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Word list:

  1. cyber-trading

  2. launch

  3. sky-rocket

  4. bid

Questions:

  1. In what way is floor-trading replaced?

  2. What is the difference between Western online trading sites and the Ukrainian ones?

  3. What is the problem with an Internet connection in Ukraine?

Unit XII

Part I

Ex. I. Think and answer:

  1. Would you like to be an owner of a multimillion business?

  2. If so, where would you start having just a small capital to invest?

Ex. II. Read the text and copy down the unknown words, make a list of key economic terms.

Competitive Analysis

For your small business to succeed, you need to know almost as much about your competitors as you do about your own company and customers. Unfortunately, many small business owners make the mistake of waiting until a competitor has opened up shop across the street and is cutting into profits to find out who and what they're up against.

A competitive analysis allows you to identify your competitors and evaluate their respective strengths and weaknesses. By knowing the actions of your competitors, you will have a better understanding of what products or services you should offer; how you can market them effectively; and how you can position your business.

Competitive analysis is an ongoing process. You should always be gathering information about your competitors. Look at their Web sites. Read their product literature and brochures. Get your hands on their products. See how they present themselves at trade shows. Read about them in your industry's trade publications. Talk to your customers to see how they feel about competitive products or services.

Step 1: Identify your competition.

Step 2: Analyse strengths and weaknesses.

Step 3: Look at opportunities and threats.

Step 4: Determine your position.

Step 1: Identify your competition

Every business has competitors.

Begin by looking at your primary competitors. These are the market leaders, the companies who currently dominate your market. If you're a computer consultant, it would be other consultants with the same speciality.

Next, look for your secondary and indirect competitors.

Finally, look at potential competitors. These are companies who might be moving into your market and who you need to prepare to compete against.

Step 2: Analyse strengths and weaknesses

After you've figured out who your competitors are, determine their strengths and find out what their vulnerabilities are. Why do customers buy from them? Is it price? value? service? convenience? reputation?

It's a good idea to do this strengths/weaknesses analysis in table form. Write down the names of each of your competitors. Then set up columns listing every important category for your line of business (price, value, service, location, reputation, expertise, convenience, personnel, advertising/marketing, or whatever else is appropriate to your type of company). Once you have this table set, rate your competitors.