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The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.
If you're going it on your own, you're eligible to create a sole proprietorship. If more than one person will be liable, you'll need to register as some form of partnership. However, you might want to separate yourself from your business so you're not personally responsible for debts, legal obligations and other issues. In that case, you'll need to form a corporation. Small businesses, for example, usually register as Limited Liability Corporations. It's wise to meet with a professional tax adviser before you make your decision.