market but offer different products. A good example is a survey General Motors conducted of people who wanted to buy a new Corvette. When asked what products they would consider instead of the Corvette, mid-priced sports cars were always the top choices, but also the Sea Ray, which is fast and elegant. The Sea Ray met the same basic needs as a Corvette—a sports car would make the buyer feel young and help them impress their friends, especially the opposite sex. Similarly, television and the Internet are indirect competitors of Amazon.com because each of their products competes for viewers’ attention in their free time.
Future competitors are existing companies that are not yet in the market you intend to capture, but could move into that market at any time. For Purma Top Gifts, a future competitor is a gift shop in Purma that may start selling online. Obviously, future competitors can also be indirect competitors. Once an indirect competitor sees you succeeding in their field with a different product, they may try to replicate what you have and thus become a direct and formidable competitor.
Identifying your current and future competition is a daunting task, as your direct and future competitors could number in the dozens, hundreds, or even thousands. Instead, you’ll need to map out the key competitors—those who will have a real impact on your business.
The level of competition will determine the number of competitors so it is best to identify 7 to 10 direct competitors (if you can) and 3 to 5 indirect and future competitors. From this list, 2 to 3 direct competitors, 1 indirect competitor and 1 future competitor should be analyzed in depth. Number of competitors
The competition you analyze is less important than determining how competitive they are and the depth of your analysis. A thorough analysis will convince a potential investor that your strategy is on solid ground.
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+ Find your competitors: Who are your competitors? How can you find them? Since you are running an e-business, the Internet is a perfect place to find your competitors. Not only are there advanced search tools available to help you identify your competitors, but your competitors want to be noticed on the Internet, making it impossible for them to hide their information from you. So the logical and best place to start looking for your competitors is on the web.
The most popular search engine in the world today is Google, but other recommended ones include Alta Vista, and Hotbot. The main problem with these search engines is not finding not enough competitors, but finding too many competitors (for example, results 1 to 10 of 7222 results). If you are frustrated with too many competitors when searching and want something more effective in your search strategy, explore the tools, as well as the utilities that these search engines offer. For example, in Google, increase the number of keywords you use in the “find in results” section and/or use Google’s advanced search. You probably already know other search engine basics such as using quotation marks to find specialized words (e.g., words that are attached together). If not, you can ask for help from the “tips and tricks” page in your favorite search engine.
Another Internet search engine is Yahoo! Because Yahoo! is a directory, not a search engine, it may already have a link to competitors in your industry in an ordered list. Once you have used a search engine to find a competitor or two, you will be able to find a list of competitors in your industry.
major competitors, type them into Yahoo!'s search box. If you're lucky, the results will point you to your competitors' sites. WW and Internet virtual library are popular links to websites.
Want to learn more about search engines? A good guide to learning more about Internet searching is the University of California-Berkeley Internet Library Guide. A good site about search engines is Search Engine Watch. A good article about using search engines is “Frequently Asked Questions About Web Search Engines: Questions, Answers, and Problems” by Gary Price.
Your search for competitors should not end here. Some of the sources you used in your industry and market analysis may prove useful for your competitor analysis. For example, visit the websites or published guides of professional trade organizations in your industry. In particular, potential competitors who are not currently on the web may be found in these sources. You may want to complete your search for competitor information from potential customers through chat rooms and other forms of communication.
While searching, remember where on the web you found information about your competitors. For example, which section of Yahoo! lists your competitors? Which competitors appear highest in search engines? This information is useful because in a short time, your business will want to be like that.
When conducting your research, what keywords or terms should you use? Consider the exercises you did when you wrote your report. You were asked to list words and phrases that describe your business and the ideal image of your company from a customer's perspective. The most important keywords here are those that reflect the customer's perspective.
Because in the competitive Internet marketplace, the customer's perspective comes first. With this in mind, refine your initial list by considering:
List words and phrases that describe your product or service from the customer’s perspective. Be specific and include the level of service or product. For example, Purma Shop Gifts intends to launch a range of wool fabrics, so “wool” would be included in the list.
List words and phrases that describe your target customers and their needs.
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Once you have identified your competitors, visit their websites and
assess what level of competition they are. What you need to focus on here is the target market, similar or identical products, don't let a flashy website convince you that they are your main competitor
Categorize your competitors into three groups: direct, indirect, and prospective. Within each group, develop a “quick and dirty” ranking system (e.g., rate on a scale of 1 to 10 their target market and how similar their products are to yours). Your goal in this first step is to create a short, organized list of your major competitors.
Competitive Analysis
Create a Competitor Analysis : With your list of competitors in hand, the next step is to conduct a methodical analysis of their strengths and weaknesses. Why is this important? It is a truism that a company achieves success through the assets, skills, and competitive advantages it brings to the market. A good competitor analysis will reveal why your competitors are successful and help you generate a business idea. Looking for weaknesses not only provides insight into the
what other competitors might be doing wrong, but also reveals where the opportunities for success lie.
A competitor analysis spreadsheet is an effective tool for comparing competitors across a number of dimensions – company information, products/services, customers, and competitive advantages.
A competitor analysis spreadsheet is essentially a large spreadsheet. In the first column of the spreadsheet is a list of criteria used to identify differences and similarities between competitors, everything from path information like URLs to competitive strategy information like retaining suppliers and customers. In subsequent columns is the corresponding information about each competitor you are analyzing.
Next, designate a column for your business and fill it with information about your company. This provides a useful comparison between your business and your competitors, letting you know where your business stands compared to other companies competing in your industry.
How many competitors should you analyze? This is a difficult question to answer because it depends on your business and the competitive market in which your business will operate. It is best to analyze 2-3 direct competitors, 1 indirect competitor, and 1 potential competitor.
What sources of information can be used to fill out a competitor analysis? The most basic source of information is the internet. Other sources of information include:
• Annual reports: If a competitor is public, they will issue annual reports, which may be available in your university's library, downloaded from the company's website, or requested from the competitor itself.
• Securities companies: All securities companies have research departments that collect and analyze data on a number of industries. This is the data you need, but to get it, you will have to pay for it or become an investor.
• Internet: In addition to company websites, you should also use Google or other search engines to find headlines, reviews, or any information related to competitors.
6.7. Implementation organization
6.7. 1. Implementation planning
What is implementation? Implementation is the process of using input resources to transform into output products. Inputs include raw materials, machinery, equipment, labor, and managerial talent. Outputs include goods, services, information, and anything else that provides value to customers.
Operations cannot be ignored as it is the “big part” in the 21st century. Operations play a vital role in the success of an organization because execution creates value for the products.
6.7. 2. Contents of the implementation plan
A business idea implementation plan should include the following contents:
after:
+ Business location: As an online business, the location
The primary focus of your business is the Internet, and various aspects of establishing and maintaining a presence in Cyberspace will be discussed in the Web presence section. However, all e-businesses will also be represented in a traditional manner. If your online business sells products to physical stores, stores products in warehouses, ships products from distribution points, or services customers from a service center, then the positioning aspects of your business should be determined.
For example, Amazon.com places its warehouses in densely populated locations like Delaware and Nevada so it can ship books to the East Coast and California without incurring sales tax, giving it a competitive advantage over local bookstores.
+ Necessary equipment and facilities: Assets involved in the business operations of an e-business: offices, equipment, machinery, vehicles and software.
+ Production and business processes: This section provides a daily implementation process describing the process of creating the values provided to customers. The reader of the business plan will not want to know the details of the production process, how many services have been provided to customers, output, production margin... but they are only interested in the implementation process and policies. Because if the business uses new technology to speed up business and achieve new efficiency in processing information and products
+ Purchasing procedures: If the implementation activities are to turn inputs into outputs, then the purchase of inputs should be considered in the business plan. Inputs include raw materials for manufacturers, spare parts for assemblers, finished products for retailers, and equipment and supplies for service providers. Purchasing online or entering a digital marketplace, the input factor will help the business increase efficiency compared to competitors.
+ Inventory management procedures: Effective management of inventory and finished goods is important for companies that hold raw materials or products for a significant period of time. Since inventory is considered a significant investment fund and the ability to effectively control inventory is a management quality that a business plan reader looks for.
+ Quality control procedures: Effective management of raw material and finished goods inventories is important for companies that hold any raw materials or products for a long period of time. For these companies, inventories are an alternative investment and being able to effectively manage inventories will help the business attract more investment.
+ Quality control is an important part of business planning as businesses will operate in a highly competitive market and the nature of the products or customer perceptions of quality will be a major factor in purchasing decisions. One of the key points of quality control is to investigate the feasibility of achieving a quality control certification for your industry (e.g., ISO 9000).
+ Customer service procedures:Among the sections of e-business plans, customer service and policies should be included in the e-business plan. Why? Not only because every e-business has customers, but also because this is one of the best ways for e-businesses to differentiate themselves from their competitors in the online marketplace.
+ Organizational structure: Most countries require organizations to specify the form of business ownership for tax and other legal purposes. In the United States, the common choices are sole proprietorship, partnership, and corporation. Other countries around the world have the same forms, just with different names. For example, in the United Kingdom and most countries in the Commonwealth, a corporation is a limited liability company.
If a business is a large or medium-sized company, readers of the business plan will be interested in what form of ownership the business is organized under to achieve the goals set out in the business plan. The organizational structure indicates the level of