Analysis of the competition and market environment allows to determine chances for the success of the enterprise on the given line. Competitiveness is a process in which the business entities compete with each other in entering market deals. The goal of the enterprise is to present more lucrative offer that affects positive implementation of its business. Enterprises can compete with each other in terms of price, quality of the product and advertising.

Analysis of the competition takes place on several levels:

  • competition within the brand,
  • competition in the industry,
  • competition in the product form,
  • general competition.

Analysis of the competition includes analysis of:

  • strategic group, i.e. companies that run according to identical strategy on the target market,
  • goals of the competition,
  • strong and weak points of competition,
  • response patterns on actions of the competition.

In analysis of competition it is crucial to determine four elements:

  • future goals,
  • assumptions about the business and the industry pat of which is the enterprise,
  • current strategies, i.e. how the company copes with the competition these days,
  • favourable circumstances and threats.

Gaining this knowledge helps the company assess reactions of the competition in case when new situations come into the market.