Create an industry overview
Every strong competitor analysis begins with understanding the broader industry context. Without this step, insights about individual rivals risk being misinterpreted. An industry overview frames the playing field by capturing market size, growth potential, trends, and external forces shaping how all competitors operate.
A good overview typically covers 4 dimensions:
- Define market size and growth to understand the scale and potential for expansion.
- Scan key trends and drivers, such as technological innovation, customer behavior shifts, or new business models.
- Review the regulatory and economic environment, which may create both risks and opportunities.
- Identify structural changes, like new entrants or substitutes, that could redefine categories. For example, Airbnb was not a direct hotel competitor at first, but it reshaped the entire accommodation industry.[1]
Completing this overview ensures that when you later benchmark competitors, you interpret their moves in context. A company losing market share in a shrinking segment faces different pressures than one in a growing market. By starting with a clear view of the whole industry, you make better strategic choices and avoid focusing only on narrow rival comparisons.[2]
