Video Worksheet 8:  Who Are Your Competitors?                    Name:____________________________

Objective:  Why is it important for entrepreneurs to identify their competitors?

When making their business plans and learning about their competitors, entrepreneurs ask some basic questions about existing products and services similar to their product or service idea. They ask the following questions: 

4. What makes existing products or services good?
5. Can the competitor's products or services be improved in any way?
6. How much do competitors charge customers for the product or service?  
7. How are the competitors’ products or services advertised and promoted? 

Vocabulary:  

Competitive Advantage–Refers to factors that allow a company to produce goods or deliver services better than its rivals. Factors include:  faster service, more service offerings, different methods of delivering the service, cheaper products, higher quality products, better functioning product, product made of more durable materials, better customer service, etc.  These factors help generate more sales and a better market share.  

Direct Competition–When two or more businesses offer the same product or service and compete for the same market.

Indirect Competition–When two or more businesses are targeting the same client need in the same market but offer different products or services.

After-watching debrief: 

1. Using an example from the video, explain the difference between indirect and direct competition. 

2. Sophia and Kamal are planning non-profits. However, they will still have to compete. Who are their competitors and what might be their best approach to winning?

3.  Describe the competitive advantage one of the entrepreneurs in the video has over their competition.

4. What role does innovation play in maintaining a competitive advantage in the market?