NovarsGroup Business Brokers

analyze your competitive position

The buyer will analyze the competition
They may request that you list your competition along with the strengths and weaknesses of each competitor:

• if you are operating in an emerging market, you may have few competitors. But fast growing markets invite in new players with new capital that can challenge your dominant position.
  
  
• if you are operating in stable markets, you may have many competitors who hold a strategic position in the market. It is unlikely to see new competition; but it is possible for mergers and acquisitions that may give a competitor added strength and depth.

The buyer will discuss your competitive defense:

• define the barriers of entry into your market — how easy or how difficult is it from someone entering your market to compete?
  
  
• define the the barriers of exit — can a competitor exit the business fairly easy or are the barriers so high that an attack on a competitor may force retaliation in price or other?
  
  
• what competitive threats do you find from players in the value chain — can your supplier or buyer move down or up the value chain to compete directly?
  
  
• what gives you an competitive advantage — is it your retail location, target location, product offering, or what?