The competitive analysis section can be the the most difficult section to compile when writing a business plan. In order to be successful in your new business, you have to know your competitor. Understanding your customers cannot be done without considering the strengths and weaknesses of your competition and how they satisfy the needs of their customers. This process includes understanding the market niches they are pursuing and why their customers make a decision to buy product from them. In the free market, people are provided alternate choices, and the companies that evaluate the products or services without considering those differences will find themselves falling behind in the race.