4 min read

This lesson provides some key principles to conducting good competitive research, another key aspect of developing market insights.

1. Know the What & Why

What is your competitors doing, and why are they doing it? Most PMs stop at the first question, which ends up being feature-level analysis at best. Analyze outcomes, not outputs.

2. Indirect competitors matter

Most focus only on direct competitors. The issue is, companies can be simultaneously not in direct competition and still represent a real threat.

Few expected the rise of Meta. Now, they own 90% of the VR headsets market. They weren’t a direct competitor, until they were. Given enough foresight, good PMs will know to defend vulnerable positions.

3. Vet your Competitors

Analyze companies that have high:

• [ ] Market share (how many users prefer it over its competitors now?)
• [ ] Growth rate (how much has revenue/DAUs/MAUs grown?)
• [ ] Adjacent market capture (beyond its core use cases, does it capture additional market?)
• [ ] Leadership (are there notable industry figures leading or investing?)
• [ ] Technological/resource similarity (do they have tech and/or human capital to pivot in?)

4. Stop copying Apple

Does it feel like every consumer tech company copies Apple at some point?