When writing this section you have to investigate your competitors and then you can analyze them. Competitive Analysis section may be divided into several paragraphs with separate headings.
The first and the easiest stage of your work is determination of your competitors in other words the Competitive Environment. Outline how much of the market they control. If you’re starting a small business that will be operating locally, just drive around or look in the local phone book and you’ll make out your competitors. For a big business it is much harder to provide such investigation.
In any case you have to make sure that you identify all your possible competitors at this stage. Then you can begin to gather information about them that are needed for the competitive analysis. This can be the hard task as your competitors may not be willing to confide their business details to you. You have to get to know what markets or market segments is served by your competitors, why customers choose them and what benefits they get from your competitors; all available information about their products and/or services, pricing, and promotion.
The most effective way to get the necessary information is a visit, either to the bricks and mortar store, or to the company's Web site. There are a lot about products and services your competitors offer, their pricing, promotion strategies, and customers’ benefits. Pay attention to how customers are treated. If your talk to their customers and/or clients you’ll understand why they buy from your competitors. But the point is that customers may be unknown to you or they may not be willing to talk to you.
Company's vendors, suppliers, and employees are also a good source of information about competitors. Try to find them and ask.
If your competitors attend any trade shows, visit their booths.
Another available source of knowledge about competitors is newspapers, magazines, online publications, and press releases.
Competition Analyze
You’ve gathered information about your competitors but it isn’t enough. Now you have to analyze collected information and then include it in the business plan.
The main purpose of your competitive analysis is to make out and expand upon the difference between the proposed business and your competitors. Actually you should explain the benefits your business will offer the customer and your competition can't or won't supply.
Before writing a competition analyze think over how you are going to compete with each specific company. If you determine a market niche where you can capture a specific target market whose needs are not being met, your business has more chances to succeed. You can choose a particular segment of the market that your competitors have missed. There is also a service that customers may require but other market participant does not supply.
The last important think about Competitive Analysis section: don't provide a lot of exhaustive details here. Just show that you are well-informed about the competition in your market segment and that you have a clear, definitive plan that will enable your new business to successfully compete. | 
