V. Competitive Analysis
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Direct & Indirect Competitors
The following establishments are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Made in [Location]
Made in [Location] is a family-owned gift shop that sells souvenirs and gifts made by crafters and manufacturers located in [Location]. The company runs three different shops around the city, selling souvenirs, local food and treats, and handcrafted gift items. They have become very popular in recent years, as their stores ensure that local businesses are supported and that tourists receive unique gift items. We expect that Made in [Location] will be our biggest competitor.
Traveltopia
Traveltopia is a nationwide gift shop brand that sells a wide variety of gifts and souvenirs at tourist attractions all around the country. They are typically set up in airports, museums, and similar destinations, but also have a standalone store in downtown [Location]. Tourists looking for locally themed gifts and souvenirs can easily find what they are looking for at one of these locations.
While Traveltopia is a large competitor, they only offer generic souvenirs and gifts to tourists. Consumers who want unique souvenirs will be more inclined to shop at our business.
Sweet Home [Location]
Located across the street from our potential retail location, Sweet Home [Location] is a popular destination for anyone looking for [Location]-themed gifts for friends and family. They have a large and impressive inventory that includes clothing, posters, postcards, mugs, shot glasses, and much, much more. Their location and inventory selection will make them a fierce competitor for our target market.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town. It is located near several popular tourist destinations making it easy for tourists to access the shop. It is also easily accessible to residents and commuters.
- Management: [Company Name]’s management team has years of business and marketing experience that allows it to market to and serve customers in a much more sophisticated manner than its competitors.
- Relationships: Having lived in the community for 20 years, [Founder’s Name] knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
