Overview
Method category: Generative product research
Competitive Analysis involves thoroughly researching competitors to understand the market landscape and positioning strategy. In GLIDR, this research type helps identify where your product fits competitively. The process involves connecting relevant product ideas, running research, seeking primary and secondary sources about competitors' features and positioning, comparing positioning strategies, and moving findings to the Analyze phase.
In Brief
Competitive analysis is a secondary research method performed online relatively quickly and comprehensively for generative market and product analysis. It's crucial for new business ideas, helping paint a picture of the competitor landscape. As ideas develop, researchers typically start broad then zoom in based on experimental findings. A detailed analysis aids communication and differentiation while serving as due diligence expected by investors.
Helps Answer
- Who is our competitor?
- How are they solving customer problems?
- What form should the product take?
- How can we differentiate our offering and positioning?
- What type of revenues are being generated?
Tags
B2C, B2B, Qualitative, Channels, Value proposition
Time Commitment & Resources
Initially 1-2 days, then regular market scans.
How To
Rather than traditional X/Y graphs, Steve Blank (opens in new tab) recommends a "petal diagram" approach. Place your idea at the center, highlight customer segments with clouds around your company, fill each section with representative competitor names, note which are private and their investment levels, and include current/projected market sizes.
After initial analysis, identify three key elements: major competitors, their company strategies, and your differentiation approach. This understanding guides distribution, positioning, and pricing decisions.
Recommended tools:
- Crunchbase
- AngelList
- Quora
- Google Finance
- Google Search (industry keywords)
- Google News Alerts
- Forrester Research/IDC/Gartner
For web-based companies:
- Compete (traffic data and trends)
- Quantcast (customer demographics)
- AppData (Facebook/mobile app engagement)
Interpreting Results
Increased domain knowledge comes from understanding key players and adjacent segments. Finding no similar organizations suggests insufficient research effort. Multiple competitors indicate market growth—focus on being competitive rather than dominating immediately. Competitors may become partners in developing new markets.
Potential Biases
Confirmation Bias: Entrepreneurs may avoid finding competitors. Address through exhaustive, compelling, repeated methods and external neutral analysis.
The Numbers: Avoid fixating on competitor quantity. Focus on fitting into the emerging space and understanding your relative strengths.
Too Local: Research globally, not just locally, for most modern business ideas.
Field Tips
"Competitor Analysis should color your thinking, create the appropriate context and help educate you on what's going on."