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the product over similar products, alternatives and substitutes that exist in the market. Compare competing
products in terms of market share, quality, price, and other relevant aspects. What is it about your product
that will make it saleable What are the major strengths and weaknesses, financial position, and profitability
of your competitors Why are competitors not meeting customer needs Why are they vulnerable
For example:
PayPal’s competitive advantage over competitors is twofold:
Ease of integration: Any merchant can use PayPal’s tools to quickly add payments to an
existing web site in minutes, allowing it to address markets not served by traditional merchant
accounts and entrench itself in the market
Fraud detection: PayPal’s patent-pending fraud system allows it to detect and prevent
unauthorized payments, reducing the cost and risk of making purchases online versus
traditional credit cards
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Business Model
This section consists of one or two short paragraphs, or a handful of bullet points that describe how the
product will make money. How does the customer purchase the product Is the product sold directly to the
customer or provided as a subscription-based service Is there some other way that the business makes
money from providing the product How much money does the company make on each sale Over the
lifetime of a customer How does this compare to the competitors’ products
For example:
PayPal derives revenue from each payment transaction it processes. Customers pay nothing
to transfer funds to a merchant using the service, but merchants pay between 1.9% and 2.9%,
depending on the dollar value of the transaction, to receive funds from a customer. Each
transaction is subject to a minimum transaction fee of $0.30. This is a comparable transaction
cost to that of a merchant account, without the up-front costs of establishing the merchant
account. Based on these charges, PayPal expects to drive between $X and $Y based on an
estimated volume of Z million transactions in 2000.
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This section consists of a short one or two sentence bullet describing each of the core members of the team.
Each bullet should provide the name of the team member, their role in the organization, and highlights of
their relevant skill or career experience. In the case where the organization has only a limited number of key
personnel, this list may be augment by a list of key advisors to the organization.
For example:
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