Developing a Competitive Analysis

A comprehensive competitive analysis identifies all your competitors in your target market as well as the types of services they offer, the rates they charge, the marketing specials they may offer, in addition to their proximity to your proposed facility.


1. Identify your target market area.

To start developing your competitive analysis, get out the local map of your target market and mark the location of your proposed pet care services facility. Next draw a circle around the location at a 10 mile radius, keeping in mind that some markets are larger, especially in rural areas, and some markets are smaller, especially in urban areas. This area within the circle is the area in which you will want to identify competitors.

2. Identify your competitors within your target area by type, size, and location.

Get out the telephone book and/or use the Internet to identify all Veterinary Clinics, Large, Medium, and Small Boarding Kennels, Dog Day Care Facilities, Groomers, Mobile Groomers, Trainers, Local Humane Societies, Pet Walking services, and Pet Sitting Services within your target market area.

3. Obtain a Large Map of your target area and plot each competitor on the map by type and size assigning a specific color for each type of competitor. i.e Yellow for Vets, Red for large Kennels, Blue for Dog Day Care facilities, etc.

4. Next, Develop a competitive analysis worksheet similar to one we include in our Pet Care Business Library for each competitor. Include name, telephone numbers, fax numbers, Internet address. You can gather a lot of information about your competitors services and rates from their websites, but you may want to call and visit each and every competitor and identify as many aspects of their business operations as you can including the types and subtypes of services they offer, the rates they charge for each service, their hours of operation, their certifications, and their accreditation. Keep in mind that you will find different facility sizes with differing kennel sizes and rates with no two alike.

5. Once you've completed this exercise, you will know the competitive landscape within your target market quite well and you be able to develop a very good sense of what "The Going Rate" which is the amount charged for similar services in your target area. Discounted rates are used for specials, and premium rates are used when there are few competitors or you have something unique and special to offer. But for the purposes of preparing a realistic business plan, you'll want to use the going rate as the basis for your financial forecasts.