What it is

Understanding what other alternatives exist is critical in positioning your product for success. And this does not just include direct product competition. It includes alternatives and compliments to your business way. Said another, it's about understanding what exists in this current problem space.

TurboTax does not think of it's competition just as TaxAct. It competes against H&R Block. Local accountants. And pen and paper. All of these options help customers get to the same place - filed taxes.

Reasons and scenarios to use it

Anytime the user has choice. B2B, B2C, across industries.

If there is no "product" competition that the entrepreneur can find, encourage them to think about "what the user will stop doing if they use your product." A common scenario here is marketplace businesses see no product competition, but perhaps there are Facebook groups currently used to facility the type of matching the marketplace looks to address.

If you are working on an internal business application of some sort, this step can be skipped as typically the organization will demand usage by its employees. But still be weary of users shifting the work out of the app into email, Excel, or Slack. That is a sign of a product blind spot.

How to do it

1. Google your ass off and take notes an all the competitors you find by filling out the competitor template.
2. As you fill out the template don't worry so much about getting everything perfect. Just completing the exercise itself will be informative enough.
3. Look for a good representation of both direct product competitors as well as alternatives (5 total seems to be a good representation of customer choice).

Time required

2-3 hours but varies depending on the space. Ongoing work required.

Sample Template

Competitive Analysis Template

Other Helpful Links

https://producthabits.com/competitor-analysis/

https://www.slideshare.net/dan_o/the-lean-product-...