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Competitive analysis is an
ongoing process:
Sun Tzu and the Art of War
Around the year 500 BC, the
great Chinese military
strategist,
Sun Tzu wrote a treatise on
the Art of War. This work
is still relevant today with
advice to businesses on winning
against competitors:
If you are ignorant of both your
enemy and yourself,
then you are a fool and certain
to be defeated in every battle.
If you know yourself, but not
your enemy,
for every battle won, you will
suffer a loss.
If you know your enemy and
yourself, you will win every
battle. |
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Porter's Five Forces
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Competitive Analysis
Your business
will face obstacles to success in addition to
those posed by the competition. Half of the
battle of overcoming these external obstacles is
understanding them. And half of the key to
benefiting from "lucky breaks" is being on top
of developments and events that can be used to
your advantage.
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Business
takes place in a highly competitive,
volatile environment, so it is important
to understand the competition.
A competitive analysis allows you to
identify your competitors and evaluate
their respective strengths and
weaknesses. By knowing the actions of
your competitors, you will have a better
understanding of what products or
services you should offer, how you can
market them effectively, and how you can
position your business.
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