Competitive Analysis
Competition isn't bad—it validates that a market exists. Understanding your competitors helps you find your unique position and avoid their mistakes.
Competition Mindset
What does having competitors usually mean?
Types of Competitors
Direct Competitors
Solve the same problem for the same customers in a similar way.
Example: If you're Uber, Lyft is a direct competitor.
Indirect Competitors
Solve the same underlying problem differently or for different customers.
Example: If you're Uber, public transit, taxis, and bike rentals are indirect competitors.
Alternative Solutions
The current workarounds people use, including "do nothing."
Example: If you're Uber, walking, asking a friend for a ride, or not going at all.
Competitor Types
competitors solve the same problem the same way.
competitors solve the same problem differently.
solutions are current workarounds.
Analyzing Competitors
For each competitor, research:
- Target customer: Who are they serving?
- Value proposition: What do they promise?
- Pricing: How much do they charge?
- Strengths: What do they do well?
- Weaknesses: Where do they fall short?
- Reviews: What do customers say?
Competitive Insight
What's the strategic insight?
🌟 Competitive Intelligence!
Negative reviews reveal opportunities. If support is their weakness, you can differentiate with "24-hour response guarantee" or "real human support." Find gaps, not just features.
👍 Missing the Point
Marketing won't help if you're the same as competitors. Better to find a specific advantage than to try to out-spend them.
💡 Dig Deeper!
High overall ratings don't mean there's no opportunity. The 1-star reviews often contain the insights—they show where the competitor is failing their customers.
Finding Your Unique Position
Differentiation strategies:
- Niche focus: Serve one segment better than anyone
- Feature advantage: Do one thing dramatically better
- Price positioning: Be cheaper or more premium
- Experience: Make it easier, faster, more delightful
- Values: Stand for something competitors don't
Debug Mode: Why Did This Startup Fail?
Context: Launched as "Uber for tutoring" — match students who need help with peer tutors. Competitors: Chegg Tutors ($40M revenue), Wyzant, Varsity Tutors. Free for students, planned to monetize later.
What was the fatal flaw?
Map Your Competitors
ResearchResearch 3 competitors and analyze them:
Example Analysis
Competitor 1: LinkedIn Premium Career - Target: All job seekers. Price: $30/mo. Strengths: Huge network, InMail. Weaknesses: Generic, overwhelming. Complaints: "Not worth it," "Too broad"
Competitor 2: Handshake - Target: College students. Price: Free for students. Strengths: University partnerships. Weaknesses: Only on-campus jobs. Complaints: "Limited for non-target schools"
Alternative: Career Centers - Target: All students. Price: Free. Strengths: In-person help. Weaknesses: Overloaded, generic advice. Complaints: "Long wait times," "Advice not relevant to my situation"
Define Your Positioning
StrategyBased on your analysis, define how you'll be different:
Example Positioning
Unlike LinkedIn which serves everyone, I focus specifically on first-gen students at non-target schools.
Unlike Handshake which lists on-campus jobs, I connect students with alumni at Fortune 500 companies for referrals.
Gap: No one helps first-gen students from non-target schools get their foot in the door at competitive companies.
Strategy: Niche focus + relationship advantage (alumni referrals vs. cold applications)
Positioning: "The only career platform built by and for first-gen students breaking into competitive companies."
🎯 Key Takeaways
- Competition validates market demand—it's good!
- Analyze direct, indirect, and alternative competitors
- Read negative reviews for differentiation opportunities
- Find a gap that nobody else is filling
- Position yourself clearly: who you're for and why you're different