13

Developing and Conducting Competitor Surveys

Goals:

• Develop and conduct survey of potential competitors

Skills:

• Locating information resources and gathering relevant information

Overview:

At this point in the course, many of the students are feeling pretty good about their business' possibilities while others are questioning whether they have a good idea. Students learn that (1) it is better to find out now, rather that later if there is a problem with their business idea and (2) they may be pleasantly surprised regarding their business' opportunities when they finish their market analysis (Chapter 15).

Up to this point the students have only considered customer interest in their business idea. Now they must identify and evaluate their competitors.

In order to do this, the students must answer three questions:

• How many other businesses are trying to serve potential customers?
• What products and services are competitors offering?
• What prices are competitors charging for their services?

The answers to these questions will help students to identify a market niche and to estimate the sales potential of their business.