How do you manage competition and alternatives for your product?
As a product manager, you need to have a clear vision of what your product is, who it is for, and how it stands out from the competition. But how do you manage the inevitable challenges and threats from alternative solutions that your customers might consider or switch to? In this article, we will explore some strategies and tips to help you deal with competition and alternatives for your product, and how to use them to your advantage.
The first step to managing competition and alternatives is to know your market well. You need to understand the needs, problems, and preferences of your target customers, and how they perceive and evaluate different options. You also need to identify the key players in your market, their strengths and weaknesses, their value propositions, and their market share. You can use tools like SWOT analysis, Porter's five forces, and market segmentation to help you with this.
-
Yohay Etsion
VP Product at Cognyte ✦ Product Executive ✦ Thought Leader & Author ✦ Business & Go to Market Strategy ✦ Product Management | Marketing
Understanding your market is crucial for managing competition and alternatives. Start by analyzing the needs, problems, and preferences of your target customers. Use surveys, interviews, and market research to gather detailed insights 📊. This helps in identifying what truly matters to your audience 🎯. Evaluate the key players in your market by performing a SWOT analysis and using Porter's five forces. Assess their strengths, weaknesses, value propositions, and market share 📝. This provides a clear picture of the competitive landscape and helps identify opportunities and threats ⚖️. Stay informed about industry trends and customer feedback. This ongoing analysis allows you to adapt your strategies and maintain a competitive edge 🚀.
-
Aditi Shinde
Product @ TransUnion | Product Strategy Innovation | AI PM | CSPO SAFe POPM
Understanding your market helps you spot potential opportunities for growth and recognise threats that could impact your product. This allows for proactive decision-making.Knowing your market means understanding the needs, preferences, and behaviors of your target customers. This enables you to tailor your products and services to better meet their demands.
-
Varsha Agarwal
Dedicated to shaping exceptional product escapades for organizations!
Understanding your market's needs and competitor landscape is vital for differentiation. Analyzing competitors using tools like SWOT and Porter's five forces informs strategic decisions. In a recent project, a thorough SWOT analysis provided insights for strategic positioning and success. This experience emphasizes the importance of market understanding for competitive advantage and product success.
The next step is to define your differentiation, or what makes your product unique and superior to the competition and alternatives. You need to articulate your value proposition, or how your product solves a specific problem or delivers a specific benefit for your customers, better than anyone else. You also need to communicate your positioning, or how you want your customers to perceive and remember your product in relation to the market. You can use tools like value proposition canvas, positioning statement, and positioning map to help you with this.
-
Yohay Etsion
VP Product at Cognyte ✦ Product Executive ✦ Thought Leader & Author ✦ Business & Go to Market Strategy ✦ Product Management | Marketing
Defining your differentiation is crucial for standing out in a competitive market. Articulate your unique value proposition, highlighting how your product solves specific problems or delivers benefits better than competitors. Use tools like the Value Proposition Canvas and Positioning Statement to clearly communicate your product's uniqueness. Ensure your positioning resonates with your target audience and distinguishes your product in the marketplace. 🌟💡
The third step is to monitor and learn from the competition and alternatives. You need to keep track of their activities, strategies, and performance, and how they affect your product and market. You also need to learn from their successes and failures, and use them as sources of inspiration and improvement for your product. You can use tools like competitive analysis matrix, feature comparison table, and customer feedback to help you with this.
-
Daryna Radiichuk
Lead product manager | Monetization, Growth, Product Strategy
I believe keeping a vigilant eye on the competition is essential for staying ahead. Therefore, I usually practice: 1) Casual research - when I regularly visit competitor's products and sign up for their newsletters to find out the updates. 2) Feature & pricing comparison table and keep it always updated. With the mentioned methods I can always keep track of competitor's activities.
-
Yohay Etsion
VP Product at Cognyte ✦ Product Executive ✦ Thought Leader & Author ✦ Business & Go to Market Strategy ✦ Product Management | Marketing
Continuous monitoring and learning from competitors and alternatives are essential. Keep track of their activities, strategies, and performance through tools like competitive analysis matrices and feature comparison tables. Learn from their successes and failures to improve your own product. Regularly gather customer feedback to stay attuned to market shifts and refine your strategy accordingly. 📈🔍
The fourth step is to innovate and adapt your product to the changing market and customer needs. You need to constantly look for opportunities to create more value, delight, and loyalty for your customers, and to address any gaps or threats from the competition and alternatives. You also need to test and validate your assumptions and ideas, and iterate your product based on data and feedback. You can use tools like lean startup methodology, design thinking, and agile development to help you with this.
-
Irina Kozerog
Research-Driven Product Strategist | Fintech Innovator | Capital Markets Expert
💡 Big Advice: Continuous Innovation is Key! 💡 Even if your product has achieved market success, it's crucial to establish a robust monitoring system in order to continuously innovate and adapt. Market and customer needs are constantly evolving. Keeping up with changing customer demands and market trends ensures that your product remains relevant and valuable. A monitoring system helps you identify new opportunities for innovation. Regularly collecting and acting on customer feedback helps address pain points and improve user satisfaction. Being aware of competitor movements and industry trends allows you to make informed decisions. 🚀✨ #ContinuousInnovation #ProductDevelopment #MarketSuccess #CustomerFeedback #CompetitiveEdge 🌟📈
-
Yohay Etsion
VP Product at Cognyte ✦ Product Executive ✦ Thought Leader & Author ✦ Business & Go to Market Strategy ✦ Product Management | Marketing
Innovation and adaptability are key to staying ahead of the competition. Constantly seek opportunities to enhance customer value and address market gaps. Use methodologies like Lean Startup, Design Thinking, and Agile Development to test and validate new ideas. Iteratively improve your product based on data and feedback to ensure it remains relevant and competitive. 💡🔄
The fifth step is to collaborate and coexist with the competition and alternatives. You need to recognize that you are not alone in the market, and that you can benefit from building relationships and partnerships with other players. You also need to acknowledge that you can't win every customer or every segment, and that you can coexist with the competition and alternatives by focusing on your niche and your strengths. You can use tools like win-win negotiation, strategic alliance, and niche marketing to help you with this.
-
Yohay Etsion
VP Product at Cognyte ✦ Product Executive ✦ Thought Leader & Author ✦ Business & Go to Market Strategy ✦ Product Management | Marketing
Recognize the benefits of collaborating and coexisting with competitors and alternatives. Build strategic alliances and partnerships to leverage mutual strengths. Focus on your niche and core competencies, acknowledging that you can't capture every customer or market segment. Use win-win negotiation tactics and niche marketing strategies to create a sustainable competitive advantage. 🤝🏆
The sixth step is to educate and persuade your customers and stakeholders about your product and its advantages over the competition and alternatives. You need to craft a compelling story and message that showcases your value proposition, differentiation, and benefits, and that addresses any objections or concerns that your customers might have. You also need to use the right channels and tactics to reach and influence your target audience, and to measure and optimize your results. You can use tools like storytelling, AIDA model, and marketing mix to help you with this.
-
Yohay Etsion
VP Product at Cognyte ✦ Product Executive ✦ Thought Leader & Author ✦ Business & Go to Market Strategy ✦ Product Management | Marketing
Educating and persuading your customers and stakeholders about your product's advantages is vital. Craft compelling stories that highlight your value proposition, differentiation, and benefits. Address potential objections and concerns proactively. Utilize storytelling, the AIDA model (Attention, Interest, Desire, Action), and a well-rounded marketing mix to effectively communicate and influence your target audience. 📣📝
-
Yohay Etsion
VP Product at Cognyte ✦ Product Executive ✦ Thought Leader & Author ✦ Business & Go to Market Strategy ✦ Product Management | Marketing
In addition to the structured strategies, consider leveraging emerging trends and technologies to gain a competitive edge. Stay informed about industry developments and continuously refine your approach based on real-time data and feedback. Foster a culture of innovation within your team to stay agile and responsive to market changes. Engage with thought leaders and participate in industry forums to exchange insights and best practices. 🌐🚀
Rate this article
More relevant reading
-
Product R&DHow do you ensure timely and quality delivery of your Product R&D lifecycle?
-
Product R&DYou’re a consultant in Product R&D. How do you set realistic goals that drive success?
-
Product PlanningHow do you integrate product testing and validation tools with other product management tools and processes?
-
Product ManagementWhat biases affect product prioritization, and how can you overcome them?