business plan in a competition

How to Write a Competitive Analysis for Your Business Plan

11 min. read

Updated January 3, 2024

Do you know who your competitors are? If you do, have you taken the time to conduct a thorough competitor analysis?

Knowing your competitors, how they operate, and the necessary benchmarks you need to hit are crucial to positioning your business for success. Investors will also want to see an analysis of the competition in your business plan.

In this guide, we’ll explore the significance of competitive analysis and guide you through the essential steps to conduct and write your own. 

You’ll learn how to identify and evaluate competitors to better understand the opportunities and threats to your business. And you’ll be given a four-step process to describe and visualize how your business fits within the competitive landscape.

• What is a competitive analysis?

A competitive analysis is the process of gathering information about your competitors and using it to identify their strengths and weaknesses. This information can then be used to develop strategies to improve your own business and gain a competitive advantage.

• How to conduct a competitive analysis

Before you start writing about the competition, you need to conduct your analysis. Here are the steps you need to take:

1. Identify your competitors

The first step in conducting a comprehensive competitive analysis is to identify your competitors. 

Start by creating a list of both direct and indirect competitors within your industry or market segment. Direct competitors offer similar products or services, while indirect competitors solve the same problems your company does, but with different products or services.

Keep in mind that this list may change over time. It’s crucial to revisit it regularly to keep track of any new entrants or changes to your current competitors. For instance, a new competitor may enter the market, or an existing competitor may change their product offerings.

2. Analyze the market

Once you’ve identified your competitors, you need to study the overall market. 

This includes the market size , growth rate, trends, and customer preferences. Be sure that you understand the key drivers of demand, demographic and psychographic profiles of your target audience , and any potential market gaps or opportunities.

Conducting a market analysis can require a significant amount of research and data collection. Luckily, if you’re writing a business plan you’ll follow this process to complete the market analysis section . So, doing this research has value for multiple parts of your plan.

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3. Create a competitive framework

You’ll need to establish criteria for comparing your business with competitors. You want the metrics and information you choose to provide answers to specific questions. (“Do we have the same customers?” “What features are offered?” “How many customers are being served?”)

Here are some common factors to consider including: 

• Market share
• Product/service offerings or features
• Distribution channels
• Target markets
• Marketing strategies
• Customer service

4. Research your competitors

You can now begin gathering information about your competitors. Because you spent the time to explore the market and set up a comparison framework—your research will be far more focused and easier to complete.

There’s no perfect research process, so start by exploring sources such as competitor websites, social media, customer reviews, industry reports, press releases, and public financial statements. You may also want to conduct primary research by interviewing customers, suppliers, or industry experts.

You can check out our full guide on conducting market research for more specific steps.

5. Assess their strengths and weaknesses

Evaluate each competitor based on the criteria you’ve established in the competitive framework. Identify their key strengths (competitive advantages) and weaknesses (areas where they underperform).

6. Identify opportunities and threats

Based on the strengths and weaknesses of your competitors, identify opportunities (areas where you can outperform them) and threats (areas where they may outperform you) for your business. 

You can check out our full guide to conducting a SWOT analysis for more specific questions that you should ask as part of each step. 

• How to write your competitive analysis

Once you’ve done your research, it’s time to present your findings in your business plan. Here are the steps you need to take:

1. Determine who your audience is

Who you are writing a business plan for (investors, partners, employees, etc.) may require you to format your competitive analysis differently. 

For an internal business plan you’ll use with your team, the competition section should help them better understand the competition. You and your team will use it to look at comparative strengths and weaknesses to help you develop strategies to gain a competitive advantage.

For fundraising, your plan will be shared with potential investors or as part of a bank loan. In this case, you’re describing the competition to reassure your target reader. You are showing awareness and a firm understanding of the competition, and are positioned to take advantage of opportunities while avoiding the pitfalls.

2. Describe your competitive position

You need to know how your business stacks up, based on the values it offers to your chosen target market. To run this comparison, you’ll be using the same criteria from the competitive framework you completed earlier. You need to identify your competitive advantages and weaknesses, and any areas where you can improve.

The goal is positioning (setting your business up against the background of other offerings), and making that position clear to the target market. Here are a few questions to ask yourself in order to define your competitive position:

• How are you going to take advantage of your distinctive differences, in your customers’ eyes? 
• What are you doing better? 
• How do you work toward strengths and away from weaknesses?
• What do you want the world to think and say about you and how you compare to others?

3. Visualize your competitive position

There are a few different ways to present your competitive framework in your business plan. The first is a “positioning map” and the second is a “competitive matrix”. Depending on your needs, you can use one or both of these to communicate the information that you gathered during your competitive analysis:

Positioning map

The positioning map plots two product or business benefits across a horizontal and vertical axis. The furthest points of each represent opposite extremes (Hot and cold for example) that intersect in the middle. With this simple chart, you can drop your own business and the competition into the zone that best represents the combination of both factors.

I often refer to marketing expert Philip Kohler’s simple strategic positioning map of breakfast, shown here. You can easily draw your own map with any two factors of competition to see how a market stacks up.

It’s quite common to see the price on one axis and some important qualitative factor on the other, with the assumption that there should be a rough relationship between price and quality.

Competitive matrix

It’s pretty common for most business plans to also include a competitive matrix. It shows how different competitors stack up according to the factors identified in your competitive framework. 

How do you stack up against the others? Here’s what a typical competitive matrix looks like:

For the record, I’ve seen dozens of competitive matrices in plans and pitches. I’ve never seen a single one that didn’t show that this company does more of what the market wants than all others. So maybe that tells you something about credibility and how to increase it. Still, the ones I see are all in the context of seeking investment, so maybe that’s the nature of the game.

4. Explain your strategies for gaining a competitive edge

Your business plan should also explain the strategies your business will use to capitalize on the opportunities you’ve identified while mitigating any threats from competition. This may involve improving your product/service offerings, targeting underserved market segments, offering more attractive price points, focusing on better customer service, or developing innovative marketing strategies.

While you should cover these strategies in the competition section, this information should be expanded on further in other areas of your business plan. 

For example, based on your competitive analysis you show that most competitors have the same feature set. As part of your strategy, you see a few obvious ways to better serve your target market with additional product features. This information should be referenced within your products and services section to back up your problem and solution statement. 

• Why competition is a good thing

Business owners often wish that they had no competition. They think that with no competition, the entire market for their product or service will be theirs. That is simply not the case—especially for new startups that have truly innovative products and services. Here’s why:

Competition validates your idea

You know you have a good idea when other people are coming up with similar products or services. Competition validates the market and the fact that there are most likely customers for your new product. This also means that the costs of marketing and educating your market go down (see my next point).

Competition helps educate your target market

Being first-to-market can be a huge advantage. It also means that you will have to spend way more than the next player to educate customers about your new widget, your new solution to a problem, and your new approach to services. 

This is especially true for businesses that are extremely innovative. These first-to-market businesses will be facing customers that didn’t know that there was a solution to their problem . These potential customers might not even know that they have a problem that can be solved in a better way. 

If you’re a first-to-market company, you will have an uphill battle to educate consumers—an often expensive and time-consuming process. The 2nd-to-market will enjoy all the benefits of an educated marketplace without the large marketing expense.

Competition pushes you

Businesses that have little or no competition become stagnant. Customers have few alternatives to choose from, so there is no incentive to innovate. Constant competition ensures that your marketplace continues to evolve and that your product offering continues to evolve with it.

Competition forces focus & differentiation

Without competition, it’s easy to lose focus on your core business and your core customers and start expanding into areas that don’t serve your best customers. Competition forces you and your business to figure out how to be different than your competition while focusing on your customers. In the long term, competition will help you build a better business.

• What if there is no competition?

One mistake many new businesses make is thinking that just because nobody else is doing exactly what they’re doing, their business is a sure thing. If you’re struggling to find competitors, ask yourself these questions.

Is there a good reason why no one else is doing it?

The smart thing to do is ask yourself,  “Why isn’t anyone else doing it?”

It’s possible that nobody’s selling cod-liver frozen yogurt in your area because there’s simply no market for it. Ask around, talk to people, and do your market research. If you determine that you’ve got customers out there, you’re in good shape.

But that still doesn’t mean there’s no competition.

How are customers getting their needs met?

There may not be another cod-liver frozen yogurt shop within 500 miles. But maybe an online distributor sells cod-liver oil to do-it-yourselfers who make their own fro-yo at home. Or maybe your potential customers are eating frozen salmon pops right now. 

Are there any businesses that are indirect competitors?

Don’t think of competition as only other businesses that do exactly what you do. Think about what currently exists on the market that your product would displace.

It’s the difference between direct competition and indirect competition. When Henry Ford started successfully mass-producing automobiles in the U.S., he didn’t have other automakers to compete with. His competition was horse-and-buggy makers, bicycles, and railroads.

Do a competitive analysis, but don’t let it derail your planning

While it’s important that you know the competition, don’t get too caught up in the research. 

If all you do is track your competition and do endless competitive analyses, you won’t be able to come up with original ideas. You will end up looking and acting just like your competition. Instead, make a habit of NOT visiting your competition’s website, NOT going into their store, and NOT calling their sales office. 

Focus instead on how you can provide the best service possible and spend your time talking to your customers. Figure out how you can better serve the next person that walks in the door so that they become a lifetime customer, a reference, or a referral source.

If you focus too much on the competition, you will become a copycat. When that happens, it won’t matter to a customer if they walk into your store or the competition’s because you will both be the same.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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Top 20 Student Business-Plan Competitions

Say you have an awesome idea for a startup, something with real potential. There is, however, a pretty big problem: launching a business isn’t cheap, and as a student or recent graduate, it’s difficult to finance a business on your own. But, your idea is good. So what happens next? We’ve compiled a list of the top competitions aimed at current college undergraduates, graduate students, recent alumni, and high school students from all over the world to not only help you test your business model against what your peers are doing (and gain meaningful experience in the process), but also transform your idea into a reality.

1. High School Utah Entrepreneur Challenge

Hosted by the Lassonde Entrepreneur Institute at the University of Utah with sponsorship from Zions Bank, this competition is targeted at high schoolers with big ideas.

• What you need : A business idea that includes the following: a problem, a proposed solution, a targeted audience/customer and a prototype.
• Who can apply : Any Utah high-schooler aged 14-18. Teams are not required but can include up to 5 members.
• Where: This year’s events are expected to be virtual due to the COVID-19 pandemic.
• What you could win : Prizes vary in amount and type based on award received.
• 2020-21 Deadline : Apply by Feb. 17, 2021.
• Website : https://lassonde.utah.edu/hsuec/

2.  Blue Ocean High School Entrepreneurial Leaders

A global, virtual pitch competition for high school students aimed to provide feedback, advance ideas, and launch students’ futures.

• What you need : A 3-5 minute pitch for a big idea.
• Who can apply : Any student currently in high school.
• Where: This is a virtual event conducted through video submissions.
• What you could win : The grand prize winner receives $1,000, with other awards receiving up to $750. There are also opportunities for high schools to receive grant money, too.
• 2020-21 Deadline : Apply by Feb. 19, 2021.
• Website : https://blueoceancompetition.org/

3.  Get Seeded

Designed to help get ideas off the ground, this two-part milestone grant funding program seeks out students with measurable goals and helps fund the entrepreneurial process. This program is managed by the Lassonde Entrepreneur Institute at the University of Utah and sponsored by Chad and Kristen Anselmo and doxy.me.

• What you need : A startup with short-term measurable milestones (prototyping, marketing, etc.) that can be achieved within 30-90 days.
• Who can apply : Any college student in Utah.
• Where: The University of Utah in Salt Lake City, Utah, though location is subject to change due to the COVID-19 pandemic.
• What you could win : There are two grants opportunities: a microgrant of up to $500, and a Seed Grant for $501-1,500.
• 2020-21 Deadline : Regular grant intervals. See website for details.
• Website : https://lassonde.utah.edu/getseeded/

4. TechCrunch’s Startup Battlefield

A competition for early-stage startups to receive equity-free prize money, as well as general investors and media attention.

• What you need : A mid-stage startup with clear ideas and product or service in the development stages.
• Who can apply : Anyone with a startup idea is invited to participate.
• Where: The first round of competition is regional, and is subject to change due to the ongoing COVID-19 pandemic.
• What you could win : Global competition winners receive $100,000 in prize money.
• 2020-21 Deadline : Application dates have not yet been updated, as they vary by region.
• Website : https://techcrunch.com/

 5.  Hatch Pitch

Hosted with SXSW in Austin, Texas, until 2016, this is a competition focused on startups with information technology angles.

• What you need : A company in which the founders retain some portion of ownership, as well as a product or service that launched sometime in the past 2 years (or within 6 months after the Hatch Pitch event.)
• Who can apply : Anyone who meets the above criteria. There is no specific age limit or education requirement.
• Where: Houston, Texas, though location is subject to change due to the COVID-19 pandemic.
• What you could win : Winners can receive any amount of funding based on investors’ interest. All contestants receive active coaching and mentoring, as well as publicity for their concepts.
• 2020-21 Deadline : Applications are received on a rolling basis.
• Website : https://www.hatchpitch.com/apply-full-form

6. Rice University Business Plan Competition

A virtual three-day competition that accounts for pitches, feedback, and judge interaction, designed to give entrepreneurs real-world experience.

• What you need : A business in the seed, startup, or early growth stages
• Who can apply : Any full-time or part-time U.S. graduate students. Teams must have at least one graduate student and a faculty advisor, but only students can present.
• Where: Rice University in Houston, Texas.
• What you could win : The grand prize winner receives $125,000 in equity capital from a Houston investment group as well as $20,000 in cash and about $80,000 in services. This includes a year’s worth of office space.
• 2020-21 Deadline : Apply by Feb. 2, 2021, for the April 5-9, 2021 competition.
• Website : https://rbpc.rice.edu/

7. New Venture Championship, University of Oregon

This virtual competition attracts students who want to “create something extraordinary,” and can bridge the gap between a market need and a real solution.

• What you need : A business majorly owned by students that has a faculty advisor, looking for seed capital.
• Who can apply : Teams of 2-5 students who created, manage, and own their ventures and who are allocated at least 50% of the startup’s equity. At least one member of the team is required to be enrolled in a graduate program from any field.
• Where : Portland, Oregon.
• What you could win : Up to $50,000 in prize money is up for grabs. If you don’t make it to the top round, you can still compete in a lightning round for prize money during the finals.
• 2020-21 Deadline : Applications are due by Feb. 14, 2021, to compete in the qualifying round (Feb. 15 – March 20).
• Website : https://business.uoregon.edu/nvc/details

8. ClimateTech & Energy Prize @ MIT

A competition aimed at any student who wants to change the way we handle energy.

• What you need : A business focused on one of four categories: Generating Energy, Delivering Energy, Improving Energy Usage or Energy for Developing Economies.
• Who can apply : University teams from across the United States.
• Where : Cambridge, Massachusetts.
• What you could win : The top two teams in each category go on to compete for a $100,000 Grand Prize and other monetary prizes.
• 2020-21 Deadlines : Applications due on Feb. 5, 2021.
• Website : https://cep.mit.edu/intro

9. Baylor Business New Venture Competition

Hosted by Baylor University, this two-track competition is nationwide.

• What you need : A business in one of two competition tracks: Internet and Consumer Technology and Non-Internet and Consumer Technology Companies. Internet and Consumer Technology companies must aim to impact one of the following industries: Internet Services, Internet Security, Info Tech, Software Cloud, Mobile Tech, Mobile Apps, Mobile Commerce, Web/e-Commerce, Social Commerce, Social Networking, Social Media, Social Gaming, Video Gaming.
• Who can apply : Current students or recent alumni (within the last 15 months) in teams with 2-4 members.
• Where : Baylor University in Waco, Texas.
• What you could win: All prizes are in cash and range from a grand prize of $60,000 to $1,500 for second and third-round winners.
• 2021-2022 Deadlines : Dates have not yet been updated for the following year. The 2021 competition can be streamed from Mar. 25-27, 2021.
• Website : https://www.baylor.edu/business/newventurecompetition/

10. Innovation World Cup Series

This is a global competition split into categories where participants connect and compete in a convention setting.

• What you need : A business that is involved in the internet of things or wearable technology in the fields of Home, City, Lifestyle, Industrial, Transportation, Healthcare, and Retail.
• Who can apply : If you are 18 or older and in no way affiliated with Navispace, the host, you can apply.
• Where : Munich, Germany.
• What you could win: Prize pool of $500,000, with networking and exposure included
• 2020-21 Deadlines : Applications are open now, and due by Sept. 22, 2021.
• Website : https://www.innovationworldcup.com/13th-iot-wt-innovation-world-cup/

11.  Utah Entrepreneur Challenge

A business-model competition for all college students in Utah. This competition is hosted by the Lassonde Entrepreneur Institute at the University of Utah and sponsored by Zions Bank.

• What you need : A business model of any type.
• Who can apply : University students currently enrolled in Utah colleges.
• Where : The University of Utah in Salt Lake City, Utah, though location is subject to change due to the COVID-19 pandemic.
• What you could win : Grand prize is up to $40,000 in cash, with additional prizes, like Best Speed Pitch, ranging in dollar amounts
• 2020-21 Deadlines : Applications close on Feb. 8, 2021.
• Website : http://lassonde.utah.edu/uec/

12. Postcode Lottery Green Challenge

One of the largest sustainable entrepreneurship competitions, participants compete with international entrepreneurs for the best green business plan.

• What you need : A business must have the potential to reduce greenhouse-gas emissions by a measurable amount, should be developed enough to execute should be realizable as a usable product or service within the next two years.
• Who can apply : Anyone 18 years or older whose business is located in Germany, Great Britain, the Netherlands, Norway, or Sweden.
• Where : The finals are hosted in Amsterdam, where you will present your idea to the jury (reasonable expenses covered for one person).
• What you could win : Grand prize winner receives €500,000. Second place receives €200,000, and other finalists receive €100,000.
• 2020-21 Deadlines : Dates have not yet been updated.
• Website : http://www.greenchallenge.info/entry-criteria

13. University Startup World Cup

This competition is hosted and organized by a Danish non-profit, Venture Cup. Their mission is to establish connections among student entrepreneurs internationally, as well as teach and advise young people about the world of business.

• What you need : Preferably, a business that fits into one of the following categories: Healthtech, Greentec, Fintech, Hightec & Robotics, or Information Communication technology. However, if your idea is cool enough, they’ll accept anything.
• Who can apply: Only student startups may enter. Therefore, all teams must have at least one person who is a student, faculty member, or recent graduate (within the year they’re applying). However, if you’re looking for team members, Venture Cup can help connect you to people with similar ideas.
• Where: The location is not certain due to the COVID-19 pandemic.
• What you could win : Grand prize is $15,000.
• Website : https://venturecup.dk/uswc/

14. Get in the Ring  

One-on-one, regional, and global face-off between startups that takes place in a literal ring.

• What you need : A “high potential” startup that is 8 years or younger with an innovative and scalable business idea or model.
• Who can apply : Anyone with a business fitting the above-described model.
• Where : The beginning stages of the competition are regional, and vary based on your location. Finals are hosted in a different location internationally every year. Travel cost to finals is covered.
• What you could win : GITR offers immense exposure for your business by placing you in a ring where you “battle” other entrepreneurs using your business pitch in front of investors and businesspeople. Grand prize winners receive a seat at the table with hand-picked advisors and investors, and title.
• 2020-21 Deadlines : Dates vary by region.
• Website : https://getinthering.co/gm2021/

15. U. Pitch

This national competition brings university students from all disciplines together to contend for the best 90-second pitch.

• What you need: A company or idea to start a for-profit company with headquarters in the U.S.
• Who can apply : Current university students or graduates within the last six months.
• Where : 100% virtual.
• What you could win : Up to $10,000 in prizes and cash.
• 2020-21 Deadlines : Applications open in the fall of 2021. You can sign up to get notified here .
• Website : https://futurefounders.com/startup/upitch/

16. Cartier Women’s Initiative Awards

This competition brings women from six regions of the world to showcase their ideas.

• What you need : A for-profit startup with at least one year of revenue.
• Who can apply : Only women may apply for this competition.
• Where : Finalists attend awards week in Singapore, where the final round commences.
• What you could win : Grand prize is $100,000. All runner ups receive $30,000.
• 2020-21 Deadlines : Application deadlines have not yet been updated.
• Website : https://application-form.cartierwomensinitiative.com/new-application

17. G-Startup Worldwide  

This is a global competition that supports young entrepreneurs in the early stages of a startup with funding and a network of investors.

• What you need : A product that is making a positive impact, showing traction in the market, and is involved in AI, Mobile, IoT, Wearables, FinTech, Cyber Security, Smart Cars, AR/VR, Space, Robotics/Drones, Education, Enterprise, Health, AggTech, or Social and eCommerce.
• Who can apply : Any startup meeting the previous requirement that is registered as a company.
• Where : First rounds are regional. Finalists compete in Silicon Valley.
• What you could win : Winners of regional competitions receive cash prizes, travel opportunities, and networking invites.
• Website : http://g-startup.net/

18. Axel Springer Plug and Play

While competitive, this 100-day program is more of an accelerator than an out-right competition. They require 5% equity in exchange for participation.

• What you need : A business model for digital entrepreneurship.
• Who can apply : Anyone with an early-stage company and a Pitch-Deck.
• Where : Location varies. Check the website below for more details.
• What you could win : €50,000, valuable time to pitch in front of investors, and experience.
• 2020-21 Deadlines : Deadlines vary based on location and stage of company.
• Website : http://www.axelspringerplugandplay.com/#home-section

19. Citizen Entrepreneurship Competition

Inspired and promoted by the United Nations, this competition takes place through three stages of online submission and selection.

• What you need : Innovative ideas and projects with a societal impact. Must involve one or more of the United Nations’ 17 Sustainable Development Goals .
• Who can apply : Anyone aged 13-29 (or 30+ in the Adult Citizen Entrepreneurship category).
• Where: Winners are invited to the Summit in Berlin in October of every year.
• What you could win : Recognition at the Summit and the UN’s acknowledgement.
• 2020-21 Deadlines : Applications open in Spring 2021.
• Website : https://www.entrepreneurship-campus.org/about-the-competition/

20. CodeLaunch

Annual seed accelerator for people and groups with ideas for “apps” who are seeking seed funding. Entries are submitted online.

• What you need : Any software ideas are taken, even just having an idea for an app is acceptable.
• Who can apply : Anyone that fits the previous criteria.
• Where : Finals are hosted in Texas, dates change every year and might be impacted by COVID-19.
• What you could win : Applicants chosen to attend CodeLaunch pitch day compete in front of judges poised to invest. Overall winner receives custom software design, development, and/or website development, hosting services, and a partnership with Code Authority. Winners may also judge the following year’s competition.
• Website : https://www.codelaunch.com/

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About the author: jacqueline mumford, 2 thoughts on “ top 20 student business-plan competitions ”.

Thanks Jacqueline for this comprehensive list. I wish I had this information 15 years ago. Had a great idea, pitched it to some venture firms and was turned down and saw the same idea skyrocket to the top two years later when someone else came with the same idea and presented it in a much more convincing way to the investors.

The Draper Competition for Collegiate Women Entrepreneurs is another event that provides microfinancing for undergraduate women-led ventures. Total cash prize pool is $100,000. http://www.smith.edu/draper

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