Perhaps you have an idea, a business or a product you intend to launch and ponder on what could give you an edge. If this is you, your answer lies in the adage, “Keep your friends close and enemies closer.” This adage is an important recipe for succeeding as a product owner, a product manager or an entrepreneur as it translates the significance of studying and understanding the competitive landscape of the industry you intend to break into. You should note that no one gives better insights on how to craft a unique brand like your competitors. The question is, “Are you ready to dine with your opp (competitor)?” If you are, let’s learn the proper etiquette to navigate such friendship. 

To break into a specific market industry, you need to identify, study and understand who your competitors are — the direct, indirect and replacement competitors. Sure, there are different types of competitors. So what makes them different?

Know Your Competitors 

1. Direct Competitors: These are your identical twins. They offer the same products and services to the same market. It is that product that competes with yours on pricing, quality and customers like Fanta is to Miranda, Nestle is to Cadbury, McDonald is to Burger King or Bolt is to Uber. 
2. Indirect Competitors: These are your cousins from your father’s side. You have the same wits but people know you are not from the same parents. These competitors sell products or services different from yours but still offer the same satisfaction as yours. They are substitutes competing with your products on convenience, availability or recognition. For sweet tooth, chocolate is an ideal indirect competitor for ice cream. Same as Netflix to DSTV or Facebook to LinkedIn for entertainment. 
3. Replacement Competitors: These are those side chicks competing with you for your husband’s money and attention. They sell different products and services but compete for your customer’s time and money. Your customers could decide to spend on them because they offer a solution that could replace yours. For example, fintech banks (Opay) to commercial banks (Gtbank). Amazon to Roving Heights or online classes to physical classes.

Now that you know the differences between these competitors, it is important you analyse their strengths, limitations and gaps in fulfilling the users’ needs. In addition to this, there are other important things you need to do when conducting a competitor analysis. They include:

• Compare yourself against your competitors using metrics like price, quality, convenience, durability, brand identity/visibility, product value, and customer service. 
• Examine their key strategies, objectives and contents against yours.
• Analyse their market strengths, customer reviews and preferences in relation to their products. 

Doing this makes it easier to analyse your products or business SWOT (strengths, weaknesses, opportunities and threats). Also with them, you can:

1. Identify market gaps and unmet customer needs;
2. Inform positions and differentiation strategy;
3. Reveal industry trends and foresee future market predictions;
4. Set target goals for growth and success
5. Identify key areas for improvement and optimization;
6. Make informed business decisions; 
7. Create a unique value proposition and competitive advantage. 

Knowing your competitors is crucial for your product or business’s success. By analysing your direct, indirect, and replacement competitors, you can identify market opportunities, inform your differentiation strategy, and create a unique value proposition. Do not launch into the market without doing your homework — study your competitors and ensure you offer something new, exciting, unique or problem-solving. Be encouraged to conduct your competitor analysis and discover how you can stand out within an industry!

When you are on the block, make sure you study your Opps to avoid a cock up.