Identifying competitors

Effective competitor analysis begins with accurately identifying who your true competitors are. This isn't always as straightforward as it seems. Competitors extend beyond companies with identical products to include alternative solutions that solve the same customer problem.

A comprehensive competitive landscape includes three types of competitors:

• Direct competitors: Companies offering similar products to the same target market. These are usually the most obvious alternatives that customers compare you with.
• Indirect competitors: Companies solving the same problem but with a different approach or product category. These competitors may not look like yours but satisfy the same customer need.
• Potential competitors: Companies that could easily enter your market based on their existing capabilities, customer base, or strategic direction.

To identify your full competitive set:

• Ask customers: During user research, ask which alternatives they considered before choosing your product (or which they would consider if switching).
• Follow the money: Research where venture capital is flowing in your industry to spot emerging competitors.
• Monitor industry news: Track announcements, product launches, and acquisitions that signal competitive movement.
• Search like a customer: Use the same search terms potential customers would use to find solutions to their problems.