A Comprehensive Framework for Rigorous Product Thinking -- Step 2: Market & Competitive Analysis
Uncover Your Edge in a Crowded Space
Welcome to part three of our ten-part series on rigorous product thinking. If you’re just joining us, here are links to previous posts, and a sense of what’s ahead:
Step 2: Market & Competitive Analysis ← This post
Step 3: User Segmentation
Step 4: Ideation & Solution Exploration
Step 5: Validation and Prototyping
Step 6: Value Proposition and MVP
Step 7: Measurement and Learning
Step 8: Iteration and Refinement
Step 9: Scaling, Monitoring, and Continuous Improvement
The main question we’ll be answering in today’s post: Why (and How) should we thoroughly evaluate the market landscape?
Again, a disclaimer: following these steps will not guarantee success. But it will increase your odds.
Let’s get right into it.
Remember Sarah? After rigorous research, she's validated a compelling problem: helping busy professionals fit fitness into their lives. But before rushing to solution mode, she knows it's vital to understand the existing landscape. Our framework reminds her to ask:
Who's Already Out There?: Are there direct competitors, or indirect solutions people use?
What's Missing?: What gaps exist in the current offerings?
Where Can She Be Different?: How will her product offer something unique?
It's tempting to think competitor analysis is all about identifying features to mimic. But the most effective product managers use this step for much more than that:
Understanding User Needs: What solutions are people already using, and where do they fall short? This reveals unmet user needs.
Defining Your Niche: Where are the gaps in the market that your product can uniquely fill?
Differentiating Your Offering: What can you do better, or completely differently, to stand out?
Informing Strategy: Does the market landscape signal a need to adjust your pricing, target audience, or go-to-market plan?
Market Effectively: What language and channels will resonate with your target audience?
Price Strategically: How much are people willing to pay for similar solutions?
Ignoring your competitors is a recipe for building a "me too" product.
Sarah dove into her analysis, focusing on:
Who are the Players?
Direct Competitors: Offering similar solutions to your target audience.
Indirect Competitors:
Solving adjacent problems or serving users in a different way that could still draw them away.
Productivity apps (if they help users free up time for fitness) or habit tracking apps (as people often pair these with fitness goals).
Strengths & Weaknesses: Analyze competitor websites, reviews, and social media presence for clues. What do they excel at, and where do users complain?
Market Trends:
Are there shifts in technology, regulations, or consumer habits that will affect your product? (For example, the rise of home fitness equipment.)
Reports on the growth of the wellness industry, wearable tech adoption, etc.
Market Size: What data can Sarah find about the fitness app market or the broader wellness industry?
Potential Threats: Could emerging companies or new tech disrupt your space?
Sarah didn't just rely on Google. Her research strategy included:
App Store Exploration: Downloading competitor apps, trying free trials, and reading user reviews.
Industry Reports: Seeking out market research on fitness app trends.
Social Listening: Monitoring online forums and social media to see what people are saying about existing solutions.
fitness
Sarah discovered most existing apps were quite rigid—long workout programs, specific equipment requirements, or restrictive diet plans. This didn't fit the needs of her target user: busy individuals trying to squeeze in exercise however they could. Her competitive edge was becoming clear!
Oversaturation: Most solutions focused on workout tracking or lengthy programs that didn't fit her target audience's time constraints.
Missed Opportunity: Very few addressed motivation and habit-building for busy people, who often struggle with long-term consistency.
Trend Alert: Wearable tech with health tracking is on the rise, offering a potential integration point.
The Power of Data: A reputable fitness report highlighted an underserved segment: professionals 35–45, struggling to maintain previously active lifestyles due to increased job demands.
This data, along with her initial problem validation, gave Sarah an edge. It helped Sarah realize her product's true value lay in short, adaptable workouts designed to fit seamlessly into busy schedules, habit tracking features, and potentially partnering with wearable tech providers. This was a much clearer niche than simply being 'another fitness app'.
Real-World Example: Dollar Shave Club
Do you remember Dollar Shave Club's disruption of the razor market? They didn't just make cheaper razors; they understood the pain points competitors ignored: overpriced blades, the inconvenience of store purchases, and a target audience tired of flashy marketing.
Up Next: Segmentation
Now that Sarah understands the competitive landscape, she's ready to go deeper. Who specifically falls within that busy professional category is her ideal user? Stay tuned for our next post on segmentation!
Let’s discuss
Have you ever analyzed your competition and discovered a surprising gap in the market? Share your stories in the comments!