Part of course:
Types of competitors
- Identifying Competition
- Kinds of Competitors
There are four kinds of competitors, each with their own unique characterization. This article will help you identify your competitors, group them into various categories, and identify the manner in which you should be competitive against each.
The best way to go about identifying competition is to keep a track of every adversity you face in your attempts to gain customers — these could be biases, other entities, or even humans. It is important to remember that the biggest competitor, across all fields, is non-consumption. Doing this exercise will ensure that every possible hindrance to the adoption of your products is kept in mind while trying to figure out why your product is not being adopted. For instance, the ability of a human worker to do the same job as a robot may be a hindrance to the adoption of an automation solution.
The identified competition can be classified into four distinct categories:
2. Indirect competitors
3. Potential competitors
4. Substitute competitors
In addition to each of these kinds of competitors, there are also known and unknown competitors. The way to identify each is:
There are eight kinds of competitors — four in the form of direct, indirect, potential, and substitutes which can further be classified into known and unknown. Every product manager should be aware of each and every competitor and therefore the number of competitors that can be put by them in the unknown category should be zero.
That being said, PMs should be most concerned with direct competitors and ensure that the products under their management are competitive with each and every direct competitor. In addition to this, each PM should make sure that their product isn’t losing too many customers to indirect competition, that the product has a competitive moat to guard against potential competition, and that the product is at the very least better at solving the problem than substitute competition.