Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other Indoor Playground services.
Indirect competitors are other options customers may use that aren’t direct competitors. This includes other leisure industries such as bowling alleys, skating rinks, etc, as well as athletic programs and afterschool programs. You need to mention such competition to show you understand that not everyone looking for entertainment for their children will frequent an Indoor Playground.
With regards to direct competition, you want to detail the other indoor playgrounds with which you compete. Most likely, your direct competitors will be Indoor Playgrounds located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What types of amusement/recreation do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior services?
- Will you provide recreation options or amenities that your competitors don’t offer?
- Will you make it easier or faster for customers to use your facilities?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.