Market Core · Competitors · Module

The competitor set

Who is actually competing for the demand — direct rivals, substitutes, in-house alternatives and inaction — defined from what customers consider.

The idea

How it works

Industry-defined competitor sets describe a peer group. The set customers use includes substitutes from other categories, building it internally, and doing nothing — and those three account for a large share of lost demand.

The set is discoverable from loss data and from asking recent buyers what else they considered. Both are cheap and both routinely contradict the assumed list.

Working with it

In practice

  1. 01

    Ask buyers what else they considered

    Recent buyers remember accurately and answer readily. Their list is the set.

  2. 02

    Include inaction

    It wins more often than any named rival and appears on almost no competitor list.

  3. 03

    Rank by where demand actually goes

    Not by size or reputation. A small rival taking a third of your losses matters more than a large one taking none.

  4. 04

    Revisit when the category shifts

    New substitutes arrive from outside the industry, which is exactly where nobody is looking.

One level in

The components of the competitor set

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The set

    Everyone competing for the demand, by type.

    Learn
  2. The share of losses

    Where deals actually go, which is what ranks the set.

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  3. The review

    When the set was last drawn from evidence rather than assumed.

    Learn

Rank the set by where your losses actually go, not by who is largest or best known.