The product that you offer in the market becomes the face of your organization. If you make mistakes while analyzing the competition levels with regards to your product then the entire business plan can fall flat on its face.
Discuss the current market situation with respect to your product. What is the demand for that particular product and what need does it satisfy? List the companies that are supplying the same product, if any.
Include the list competition that the product is going to face when it is launched into the market. This competition can be direct or indirect. Make sure that you include both to get the best perspective on the market. For e.g. If you are planning to launch a business about car modifications and spare parts then not only do you have to look at other companies doing the same but there could also be some car manufacturing companies vying for the same customer base and providing one or many products in the same segment.
Include the details of the market share with respect to the product that the competitors hold. Include plans on how you plan to make inroads into the competition faced by your product.