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Market Analysis  ›  Lesson

Competitive Analysis

Competitive Analysis 12 minCompetitive analysis covers everything users do instead of using your product, from direct rivals to substitutes and doing nothing, compared on the factors users care about.

Competitive Analysis

Kabir asks, "Who are our competitors?" and the team names two other textbook apps. Neither is ReShelf's real threat. The real threat is free, already on every student's phone, and has 1,800 members on the pilot campus alone.

The rule

Your competitor is whatever users do today instead of using you.

Look at four rings of competition:

Ring What it is ReShelf's example
Direct Same problem, same kind of product Another campus textbook app
Indirect Same problem, different kind of product General classifieds apps, the WhatsApp book group, second-hand book stalls
Substitute A different way to get the job done Library copies, sharing with a roommate, digital editions
Do nothing Putting up with the problem Buying every book new

Then compare them on the factors users care about, not on feature counts:

Factor WhatsApp group Classifieds app Book stall ReShelf
Price Low Low Medium Low
Right edition for my course Guesswork Guesswork Sometimes Matched by course code
Trust Mixed Low High Verified classmates
Reach (people already there) Everyone Huge Walk-ins only Still growing
Effort to buy High Medium Low Low

The grid shows where ReShelf wins (edition matching, trust), where it loses (reach), and which rival matters most: the WhatsApp group, because it is free and already has everyone.

The shortcut

Ask: "If ReShelf vanished tomorrow, what would students do instead?" Every answer is a competitor. Grade each on the three to five factors users value most, and look for the gap you can own.

Finding ReShelf's real competitionStep 1 of 4
  1. Ask the vanishing question

    Meera asks ten users. Answers: back to the WhatsApp group (6), buy new (3), ask a senior (1).

The trap is copying competitors' features. A rival's feature list shows what they built, not why users choose them. Study the reasons, not the buttons.

Drills

Answer fast — trust the rule.

quick drill

For ReShelf, which of these is an indirect competitor?

quick drill

Three first-years share one copy of a lab manual between them. In competition terms, this is:

quick drill

What should a competitive grid compare?

quick drill

Six of ten users say they would go back to the WhatsApp group if ReShelf vanished. What does this suggest?

Remember

  • Your competitor is whatever users do today instead of using you.
  • Ask what they'd do if you vanished, then grade every answer on the factors users value.
  • Trap: copying a rival's features instead of understanding why users choose it.

Practice — level up

0/1 solved

Write your answer, then compare it with a rubric and a model answer.

ExplainMap the real competition

ReShelf is launching on a new campus where a popular second-hand book stall sits right outside the main gate. Explain how you would analyse the competition there: which rings of competitors you would include, which factors you would compare, and how you would decide where ReShelf should compete.