Understanding Competition and Building Competitive Advantage

As a Product Owner, knowing your competition and the dynamics of your competitive landscape are essential to help your organization thrive. This information helps highlight your product’s unique value propositions and informs your pricing strategy. Understanding your current and potential competitors’ strategies, what they’re selling and to whom provides insights into market trends, potential new opportunities, and challenges - information that is vital for effective product management.

Consider the simple example of someone who wants to open a new coffee shop in a city. There are likely many that already exist. If they perform a competitor analysis, they can better understand their position in the market compared to the other coffee shops in the area and how they might differentiate themselves. For instance, their new coffee shop might offer specialty local products and ethically sourced and organic coffee, because the other coffee shops in the surrounding area are predominantly chain stores. This decision would influence the audience that they target and their marketing and vice versa.