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Business Grant Plan Sample 4 : Competitive Strategy


by Running a Part-Time
Home-Based Business

Key Competitive Capabilities

We are better positioned than our main competitors to take advantage of the increasing demands of upscale independent specialty stores to strongly distinguish their kite selection from those of mass merchants.

Because we are going to exclusively focus on importing higher end kites for independent specialty stores we will be able to serve their needs a lot better than current distributors who tend to handle many items other than kites and also give their primary attention to larger mass merchandise customers.

Tom Peterson's more extensive experience in the toy business and his solid knowledge of the kite market in North America, his personal contacts at independent retailers on the West Coast and his contacts at overseas suppliers tend to give us a strong competitive advantage.

Nancy Peterson's background in running offices and handling customer service issues will also give us a strong service advantage.

Key Competitive Disadvantages

Our first weakness is that we are a new business competing largely against already established firms.

In order to build sales more significantly, we must not just find new customers -- we must take customers away from already existing firms.

Nevertheless, by offering a superior selection of kites and focusing exclusively on upscale independent stores we feel will quickly open accounts at many retailers and construct strong relationships.

Co-founder Tom Peterson has had several discussions with owners and buyers at retailers that do confirm this opinion.

Another disadvantage that we have is stronger personal ties with accounts on the West Coast of the US and Canada than in other parts these countries.

We plan on offsetting this weakness through the hiring of experienced commission reps for other territories.

We have already had preliminary discussions with several highly successful reps and these reps have demonstrated interest in ongoing discussions with us.

Financially we do need some additional funding. But following the targeted funding being put in place we will have some more ample financing for the anticipated future.


Our strategy is to focus 100% of our efforts on the market for upscale quality kites.

Through focusing all of our effort and energy on this specific niche, we expect to quickly develop and maintain a position of leadership.

Whilst other firms try to be everything to all people, we believe that our particular focus will tend to give us some significant advantages.

The majority of firms now serving this niche, also do serve much larger markets and give only secondary attention to the upscale.

In contrast, our firm will give our total focus to this niche; our key people will stay in personal touch with customers in this niche; and we will be able to offer a response to changes in this market much faster than our competitors.

We will offer the most efficient, most highly personalized service in the marketplace that we serve.

Especially due to our being a very small, owner-operated company, we intend to use this to our advantage in order to be absolutely certain that every one of our customers receives excellent service.

We will make a significant effort towards ensuring that our customers know how valuable they are to us.

For instance, we will very carefully recommend some seasonal inventory plans for each shop that will reflect the customer traffic that the shop will receive.

We will also make some display suggestions and to create a number of displays that can be adopted to the requirements of specific shops.

Sales reps and in-house employees who deal with customers will be more carefully trained and will be given wide latitude for making sure that customers are always most contented and satisfied.

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