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It provides information from which a business owner can create a long-term strategy to minimize risks and take advantage of growth opportunities.Porter of Harvard University has become the most frequently used method for analyzing any industry in order to create a strategy to compete within it.When how to write a business plan is at the top of the SBA list of the ten steps in how to start a business, it tells you something about how important the experts consider it to be.
The situation analysis is not an easy section to write and can take several months of research and planning.
If you take the time to do it correctly, however, it can help differentiate your product or service in the marketplace.
Financing, marketing strategy and future growth all require a well-researched and thought out business plan.
There are many articles and resources available on the Internet explaining how to write a business plan, but writing a business plan is more than merely following a business plan template or copying someone’s business plan examples.
Finally, include any knowledge you have about your target customers' market behaviors, such as their usage rates of your product, loyalty trends and attitude toward your product or service.
Next, your situational analysis should include a section that describes the key collaborators for your business.A competitive analysis is an important part of your marketing plan.It can provide key insights into growth opportunities for your company.For example, you may have a warehouse operation at your company's headquarters that distributes your product to retail locations via trucks.Or you may produce your product in several locations and sell it entirely online.The situational analysis section is one of the most important parts of a marketing plan.It outlines your company goals, strengths and weaknesses; describes your target customers; identifies your important partners and distributors; and provides an analysis of the competitive environment.According to Porter, there are five forces that influence all markets and industries.The five forces are: Porter believed that an analysis of the five forces that exist in every industry could help forecast a company’s ability to compete and remain profitable.Understanding the market and industry in which your company will do business is accomplished through an industry analysis.An industry analysis conducted before you begin to write a business plan will help you to: An industry analysis is specific to the particular industry in which a business is currently operating or into which it plans to venture.