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Competition Hypotheses

Assessing the competitive landscape is imperative, regardless of whether you are defining a new market or entering an existing one. By crafting competition hypotheses, you can predict challenges and plan strategies that carve a distinctive place for your offerings.

Market Dynamics and Share​

Understanding your market's current dynamics, including market share distribution, is essential for gauging how tight the competition is and where there might be opportunities for entry or expansion.

  1. Is there no single dominant company (less than 30% market share)?
  2. If a monopoly exists with over 80% of the market, how might re-segmenting present an opportunity?
  3. How have existing competitors shaped the current market?
  4. On what grounds do they compete—product attributes, services, or price points?
  5. What customer behavior trends dominate market dynamics?

Competitive Differentiation​

Articulate clearly what sets your company apart. Understanding and communicating your unique selling points (USPs) are vital to securing your position in the marketplace.

  1. What unique capabilities or benefits does your offering bring to the market?
  2. Why do you believe your offerings differ substantially from current alternatives?
  3. How do your features or services allow customers to achieve what they couldn't before?
  4. What makes you believe that customers will value these novel features?
  5. Who are your closest competitors, and how do you compare in terms of innovation and performance?

Evaluating Current Offerings​

Taking a close look at what's already available can highlight areas for improvement and new opportunities. This involves a degree of self-assessment and an understanding of customer preferences.

  1. What are the strongest elements of your competitors' offerings?
  2. What feedback from customers can inform improvements in your offerings?
  3. If you could change one aspect of the competitive solutions, what would it be?
  4. How do people utilize these competitive offerings in their daily activities?
  5. What role does the offering play in the customer's priorities or operations?

Absence in the Market​

If you're pioneering an uncharted market space, understanding the current alternatives or lack thereof sets the foundation for showcasing the necessity and value of your offering.

  1. In the absence of a direct competitor, what alternatives do customers resort to now?
  2. What gaps do these alternatives leave, and how does your offering address them?
  3. If your market is new, how are potential customers managing without your offering?
  4. Are there tasks or needs that are currently unmet or handled inefficiently?

Formulating these competition hypotheses allows you to develop a robust, data-informed understanding of how your offerings might compete or redefine the standards within the market. It also provides a framework for tailoring your marketing and sales approaches in a way that homes in on your competitive strengths.