Question

Robert is including a description of the construction industry and the main competitors in his area in his business plan for a construction company. This is an example of which part of a business plan? A) executive summary B) funding request C) competitive analyst D) marketing and sales

Answer 1

Answer:

C) competitive analysis

Explanation:

A competitive analysis is a business plan part which reflects on the key competitors of our business (their key characteristics which are relevant for our business plan or product in general).

In this example, Robert would bring out the key characteristics of the construction industry (industry trends, industry segments etc.) and list out the relevant competitors and their potential competitive advantage. If Robert's company is a construction business specialized in skyscraper building in LA, he would list construction companies specialized in high-rise building located in California.

With the aid of a proper competitive analysis, Robert will be able to point out the business areas where it is possible to surpass our competitors. For example, when Robert decomposes the product features of the ABC competitor company - materials used, project cost, project length, skyscraper portfolio, only then he is able to see what specific area in his company needs improvement.

On the other hand, an executive summary is a short description of our business goals, key financial indicators, strategies and forecast. It possesses summarized key information, similar to a pitch.