Who are the main competitors in your target market, and what makes them your main competition? How will you beat them? Use competitor analysis to:
- Identify the strength and weakness of your ice cream shop business competitors.
- Search for opportunities to distinguish your ice cream shop company from competitors.
The first step is to determine who your direct and indirect competitors are.
The direct competitors consists of other ice cream shop businesses. These are alternatives to direct competitors that customers have.
Customers have other options for purchasing from indirect competitors than direct competitors. Grocery stores, convenience stores, and ice cream vending machines or kiosks are examples of this. You must mention such competition to demonstrate that you recognize that not everyone who wants ice cream will go to an ice cream shop.
When it comes to direct competition, you should describe the other ice cream shop businesses you compete with. It is most likely that your direct competitors will be ice cream shops located nearby.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your ice cream shop business— but keep an eye on the indirect competition as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
- Prices – Are they offer cheaper ice cream products or more costly than you and other competitors, what value do buyers get for that price?
- Quality – Are they offer better quality ice creams, the perceived worth in the eyes of the customers
- Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
- Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium ice creams? Will you offer unique ice cream products that your competitors don’t offer? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your ice cream shop business plan.