How important is competitor analysis?

Posted: Jul 17, 2018 in Business, Data, Marketing, Product Development
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CompetitorAnalysis

Whilst it’s important to keep an eye on what your competitors are up to, it certainly shouldn’t be in the bucket of tasks to obsess about and instead competitor analysis should be part and parcel of problem solving.

Whether research suggests a specific type of financial product should be launched, a specific mobile payment method is needed, refer a friend rebrand, registration flow optimised or customer support improvements, part of the discovery phase when looking at solutions should be analysing how other companies have solved the problem (including competitors), which would give a wide range of interesting ideas to consider.

It’s equally important to not simply copy what competitors do, but instead have a vision and ambition to deliver a next generation solution leapfrogging the competition.

An important time to analyse other companies approach to a solution especially competitors is their approach to new regulatory requirements, especially as some of the guidelines are so ambiguous and taking a risk approach to some regulatory requirements comes with potential consequences, but equally come with an avoidance of revenue loss and it’s important to remember that implementing regulatory requirements isn’t cheap not to mention the opportunity cost. An example is that if the likes of Vodafone, British Gas, PokerStars, Llyods or Apple have deployed a relatively high risk approach to certain regulations, then it’s safe to say that using their solutions as a guide would be sensible. If the regulation is industry specific then using the market leader could be a good base also.

If you’re one to obsess about competitors or tend to replicate what they do, the next time you have a big change to make or problem to solve, try ignoring that any competitors exist, ignore all current technical limitations giving the development teams a blank canvas to focus on solving the real clear problem at hand and you might be blown away at the creative thinking that the development teams and UX come up with, utilising the wide variety of new technology available which surpasses anything your competitors have got live or on their product roadmap.

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