analyze a competitor's current and potential nature and capabilities so they can prepare against competition. The competitor analysis looks at the following criteria: Identify competitors: Businesses must be able to identify competitors within their industry. Identifying whether competitors provide the same services or products to the same customer base is useful in gaining knowledge of direct competitors. Both direct and indirect competitors must be identified, as well as potential future competitors. Assessment of competitors: The competitor analysis looks at competitor goals, mission, strategies and resources. This supports a thorough comparison of goals and strategies of competitors and the organization. Predict future initiatives of competitors: An early insight into the potential activity of a competitor helps a company prepare against competition. Customers Customer analysis can be vast and complicated. Some of the important areas that a company analyzes includes: Demographics Advertising that is most suitable for the demographic Market size and potential growth Customer wants and needs Motivation to buy the product Distribution channels (retail, online, wholesale, etc...) Quantity and frequency of purchase Income level of customer Collaborators Collaborators are useful for businesses as they allow for an increase in the creation of ideas, as well as an increase in the likelihood of gaining more business opportunities. The following type of collaborators are: Agencies: Agencies are the middlemen of the business world. When businesses need a specific worker who specializes in the trade, they go to a recruitment agency. Suppliers: Suppliers provide raw materials that are required to build products. Different types of Suppliers include manufacturers, wholesalers, merchants, franchisors, importers and exporters, independent crafts people and drop shippers. Each category of suppliers can bring a different skill and experience to the company. Distributors: Distributors are important as they are the holding areas for inventory. Distributors can help manage manufacturer relationships as well as handle vendor relationships. Partnerships: Business partners would share assets and liabilities, allowing for a new source of capital and skills. Businesses must be able to identify whether the collaborator has the capabilities needed to help run the business as well as an analysis on the level of commitment needed for a collaborator-business relationship. Climate To fully understand the business climate and environment, many factors that can affect the business must be researched and understood. An analysis on the climate is also known as PEST analysis. The types of climate/environment firms have to analyse are: Political and regulatory environment: