Competitive Analysis
Competitive Analysis is a strategic activity that involves systematically gathering, analysing, and interpreting data about competitors’ products, services, market strategies, and performance to understand one’s own competitive position and identify opportunities and threats in the marketplace.
Goal
The goal of competitive analysis is to provide product teams with actionable insights that can inform strategic decisions regarding product development, positioning, and market entry strategies, ensuring that the product remains competitive and relevant in the market.
Context
Very few products are real market makers, and in fact, you often don't want to be one because you have to also convince customers that there is a need for your product. This means that most products are competing with existing solutions in the market. Competitive analysis helps product teams understand the best ways to position their product, differentiate it from competitors, and identify opportunities to gain market share.
Inputs
| Artifact | Description |
|---|---|
| Competitor Insights | Information on competitors' products, services, pricing, distribution channels, and marketing strategies. |
Outputs
| Artifact | Description | Benefits |
|---|---|---|
| Direct Comparison | Directly comparing product features, pricing, quality, and customer service between your product and those of your competitors. | Identifying competitive advantages and areas for improvement. |
| SWOT Analysis | Identifying the Strengths, Weaknesses, Opportunities, and Threats related to competitors to evaluate competitive advantages and vulnerabilities. | Informing areas for differentiation and strategic focus. |
| Market Positioning Mapping | Visualising the market positions of different competitors based on various dimensions such as price level, quality, or feature set to identify market gaps and saturation points. | Identifying opportunities for differentiation and market entry strategies. |
Anti-patterns
Overlooking Niche Competitors: Focusing only on the largest competitors and missing insights from niche players who might be addressing customer needs more effectively.
Confirmation Bias: Seeking information that confirms existing beliefs about the competition and overlooking potential threats.
Overreliance on Public Information: Limiting the analysis to publicly available information without seeking deeper insights (e.g., customer reviews, industry reports).