1.1.3 Analysing competitor strengths and weaknesses You will need 4 x 4 matching cards from a standard pack of cards e.g. 4 Jacks, 4 Queens, 4 Kings and 4 Aces. Shuffle the cards and deal so that each player has 4 cards. The aim of the game is to have 4 of a kind e.g. 4 Kings Each player must choose one card that they wish to discard and lay it face down in front of the person on your left Pick up the card that has been laid down by the person on your right Keep doing this until you (or someone else) has 4 of a kind The first person to have 4 of a kind must lay them down on the table and put their finger on their nose Once someone has their finger on their nose all other players must do the same The loser (donkey) must impersonate a donkey Replay the game but with another animal of the winner’s choice Whilst playing this game analyse the competition – the strengths and weaknesses of each player 1.1.3 Analysing competitor strengths and weaknesses 1.1.3 Analysing competitors

1.1.3 Analysing competitor strengths and weaknesses Analysing competitors in a market will involve finding out about the strengths and weaknesses of these firms. Look at the firms that operate in your local area Create a monopoly board and place businesses rather than streets around the board – top businesses blue, cheaper ones brown Who will end up as your Mayfair; who is your Old Kent Road? 1.1.3 Analysing competitors

1.1.3 Analysing competitor strengths and weaknesses Initial planning to set up a business requires an analysis of the competitors in that market. Based on your monopoly board findings look at a business sector that you might successfully start up a new business in e.g. coffee shops. You will require A4 paper and time to research the following questions: How many competitors are there in your chosen sector? Is there space for another business in this market? 1.1.3 Analysing competitors

1.1.3 Analysing competitor strengths and weaknesses Choose ONE industry area from your board… What are the strengths of your competitors? Answer the following questions: Do they provide good customer service? Do their products provide something extra e.g. better quality or special features? Do the people in the business have excellent knowledge of their product or special skills? Are they located in a busy area? Are their prices competitive? How do they promote their product? Are there any other factors that you perceive as strengths? 1.1.3 Analysing competitors

1.1.3 Analysing competitor strengths and weaknesses What are the weaknesses of your competitors? Answer the following questions: Do they lack an established reputation? Are they too old-fashioned? Are their prices too high? Is the quality of the product too low? Are there any other factors which you perceive as weaknesses? 1.1.3 Analysing competitors

1.1.3 Analysing competitor strengths and weaknesses Strengths v weaknesses Evaluating the competition: Divide a piece of A4 paper with a line down the middle Choose the strongest competitor from your research Using bullet points write down their strengths on the left and weaknesses on the right Do you still think that there is a space for your business having analysed the competition? 1.1.3 Analysing competitors

1.1.3 Analysing competitor strengths and weaknesses Once you understand the competitors in your chosen market it becomes easier to spot further opportunities. A number of questions need to be answered in order to understand the competition: Listen to this interview with Sadie Hopkins of the York Coffee Emporium. Write down as many tips as you can regarding opening up a coffee shop. 1.1.3 Analysing competitors

MULTIPLE CHOICE □ A Lower market share □ B An established brand name 1. Which one of the following can be seen as a strength of a competitor □ A Lower market share □ B An established brand name □ C Poor customer service □ D High costs 2. Which one of the following might be seen as a weakness of a competitor □ A Small advertising budget □ B Established reputation □ C Competitive prices □ D Low fixed costs 1. B 2. A 1.1.3 Analysing competitors 8