Master the fundamentals of product management, from user research and analytics to strategy, prioritization, communication, and execution.

Learn product management basics through practical lessons in user research, analytics, prioritization, strategy, and execution. Start on web, iOS, or Android.

Product Management Basics

Learn how to leverage AI in product management. Master AI fundamentals, prompt engineering, and practical applications for PMs.

Learn AI for product managers with practical lessons in AI fundamentals, prompt engineering, and everyday PM workflows. Start on web, iOS, or Android.

AI for Product Managers

Learn how to do competitive analysis. Master the fundamentals of competitive analysis and how to use it to make better product decisions.

Learn competitive analysis for product managers with practical lessons in market research and smarter product decisions. Start on web, iOS, or Android.

Competitive Analysis for Product Managers

## Define Competition around the Job

Competition includes more than products with the same features. Customers compare ways to achieve an outcome, including manual processes and doing nothing.

For a team needing a daily update, a live meeting and an asynchronous message may compete for the same job. Classify alternatives relative to the audience and context. The same company can be a direct rival in one workflow and an indirect alternative in another.

```productme-visual
{"asset":"resource:assets/content/ad03db7b-6f6e-4556-9ca0-e19ead3974e5/competitive-competitor-job.visual.json"}
```

<h2>Define Competition around the Job</h2>
<p>Competition includes more than products with the same features. Customers compare ways to achieve an outcome, including manual processes and doing nothing.</p>
<p>For a team needing a daily update, a live meeting and an asynchronous message may compete for the same job. Classify alternatives relative to the audience and context. The same company can be a direct rival in one workflow and an indirect alternative in another.</p>
<pre><code class="language-productme-visual">{"asset":"/content/ad03db7b-6f6e-4556-9ca0-e19ead3974e5/competitive-competitor-job.visual.json"}
</code></pre>


In product management, competition only includes companies that offer the exact same product.

<p>In product management, competition only includes companies that offer the exact same product.</p>


Which of the following is NOT a type of competition in the tech industry?

<p>Which of the following is NOT a type of competition in the tech industry?</p>


## Direct Competitors

Direct competitors offer similar approaches to the same problem for overlapping customers. Two video-meeting products may be direct competitors for a team purchasing a meeting solution. Two music-streaming services may be direct competitors for a listener choosing a subscription.

Check whether customers actually compare the options. Feature overlap supports the classification, but audience, task, and buying context are also necessary.

```mermaid
flowchart TD
  N0["Same audience and job"]
  N1["Similar approach"]
  N2["Direct comparison"]
  N0 --> N1
  N1 --> N2
```

<h2>Direct Competitors</h2>
<p>Direct competitors offer similar approaches to the same problem for overlapping customers. Two video-meeting products may be direct competitors for a team purchasing a meeting solution. Two music-streaming services may be direct competitors for a listener choosing a subscription.</p>
<p>Check whether customers actually compare the options. Feature overlap supports the classification, but audience, task, and buying context are also necessary.</p>
<pre><code class="language-mermaid">flowchart TD
  N0["Same audience and job"]
  N1["Similar approach"]
  N2["Direct comparison"]
  N0 --> N1
  N1 --> N2
</code></pre>


Zoom and Microsoft Teams are direct competitors because they both provide video conferencing services.

<p>Zoom and Microsoft Teams are direct competitors because they both provide video conferencing services.</p>


Which of the following is an example of direct competitors?

<p>Which of the following is an example of direct competitors?</p>


## Indirect Competitors

Indirect competitors address the same underlying need through a different approach. For a daily status update, a meeting tool and an asynchronous update tool may be indirect alternatives.

Do not permanently label a company based on one feature. Communication products can overlap in messaging, audio, and video. Decide the classification for the specific job and customer rather than assuming every shared capability makes two products direct rivals.

```mermaid
flowchart LR
  A["Daily team update"]
  A --> N0["Live meeting"]
  A --> N1["Asynchronous written update"]
```

<h2>Indirect Competitors</h2>
<p>Indirect competitors address the same underlying need through a different approach. For a daily status update, a meeting tool and an asynchronous update tool may be indirect alternatives.</p>
<p>Do not permanently label a company based on one feature. Communication products can overlap in messaging, audio, and video. Decide the classification for the specific job and customer rather than assuming every shared capability makes two products direct rivals.</p>
<pre><code class="language-mermaid">flowchart LR
  A["Daily team update"]
  A --> N0["Live meeting"]
  A --> N1["Asynchronous written update"]
</code></pre>


Two products with one shared feature must always be classified as direct competitors.

<p>Two products with one shared feature must always be classified as direct competitors.</p>


For the job of sharing a daily team update, which pair illustrates indirect alternatives?

<p>For the job of sharing a daily team update, which pair illustrates indirect alternatives?</p>


Similar approaches for the same audience and job are {{gap}} competitors; different approaches to that job may be {{gap}} alternatives.

<p>Similar approaches for the same audience and job are {{gap}} competitors; different approaches to that job may be {{gap}} alternatives.</p>


## Substitutes Can Cross Categories

A substitute delivers an acceptable outcome through another method. The boundary between an indirect competitor and a substitute depends on how narrowly you define the market.

An asynchronous summary can replace some status meetings when no live discussion is needed. It cannot necessarily replace a negotiation or collaborative workshop. Evaluate outcome quality and switching effort before concluding a substitute threatens the current approach.

```mermaid
flowchart TD
  N0["Underlying customer outcome"]
  N1["Alternative method"]
  N2["Check suitability and switching effort"]
  N0 --> N1
  N1 --> N2
```

<h2>Substitutes Can Cross Categories</h2>
<p>A substitute delivers an acceptable outcome through another method. The boundary between an indirect competitor and a substitute depends on how narrowly you define the market.</p>
<p>An asynchronous summary can replace some status meetings when no live discussion is needed. It cannot necessarily replace a negotiation or collaborative workshop. Evaluate outcome quality and switching effort before concluding a substitute threatens the current approach.</p>
<pre><code class="language-mermaid">flowchart TD
  N0["Underlying customer outcome"]
  N1["Alternative method"]
  N2["Check suitability and switching effort"]
  N0 --> N1
  N1 --> N2
</code></pre>


Substitute products are always direct competitors.

<p>Substitute products are always direct competitors.</p>


Which could substitute for a status meeting when no discussion is needed?

<p>Which could substitute for a status meeting when no discussion is needed?</p>


## Watch Potential Entrants

An emerging competitor is a new or newly relevant entrant into the market you are studying. It may be a startup or an established company expanding from an adjacent category. Entry creates a possibility of disruption, not a guarantee.

Fictional example: a document vendor launches task coordination for agencies. Track whether customers begin considering it for the same job, rather than calling an established product “emerging” indefinitely.

```mermaid
flowchart TD
  N0["Newly relevant entrant"]
  N1["Evidence of customer consideration"]
  N2["Update the competitor set"]
  N0 --> N1
  N1 --> N2
```

<h2>Watch Potential Entrants</h2>
<p>An emerging competitor is a new or newly relevant entrant into the market you are studying. It may be a startup or an established company expanding from an adjacent category. Entry creates a possibility of disruption, not a guarantee.</p>
<p>Fictional example: a document vendor launches task coordination for agencies. Track whether customers begin considering it for the same job, rather than calling an established product “emerging” indefinitely.</p>
<pre><code class="language-mermaid">flowchart TD
  N0["Newly relevant entrant"]
  N1["Evidence of customer consideration"]
  N2["Update the competitor set"]
  N0 --> N1
  N1 --> N2
</code></pre>


Newly relevant entrants may challenge established businesses, but entry does not guarantee disruption.

<p>Newly relevant entrants may challenge established businesses, but entry does not guarantee disruption.</p>


Which fictional example describes a newly relevant entrant?

<p>Which fictional example describes a newly relevant entrant?</p>
