Competitive Analysis and Industry
Last updated
Last updated
Competitive analysis offers insights into market trends, competitor strategies, and potential areas for product differentiation. This framework is not confined to any single industry but is a universal skill that allows Product Managers to position their products effectively within any sector. Let’s talk through some best practices for conducting a competitive analysis, using the healthcare sector and a company like GoodRx as an example to illustrate these principles.
A Product Manager at GoodRx, a platform that helps users find affordable medication, undertakes a competitive analysis to understand the prescription savings landscape. The first step is gathering data on competitors, including direct ones like other discount card services and indirect ones such as insurance companies with prescription plans. The PM evaluates their market positioning, pricing strategies, customer base, and service offerings.
The second step involves analyzing industry trends, such as the rising cost of healthcare and the increasing demand for transparency in pricing. The PM also assesses regulatory changes that may affect the competitive environment. Through this analysis, the PM identifies that GoodRx's unique selling proposition lies in its user-friendly platform and transparent pricing, which resonates with the current consumer demand for clarity and affordability in healthcare.
The PM leverages a variety of information sources during the competitive analisys.To gauge competitors' performance, they analyze publicly available financial data and market analysis reports for insights into market share growth. To understand user engagement and satisfaction, they review aggregated customer feedback from public review platforms and social media discussions. The PM also keeps abreast of industry news, publications, and conference proceedings for any announcements or trends that might indicate shifts in customer satisfaction or engagement levels.
This strategic monitoring allows the PM to discern industry best practices and to pinpoint areas where GoodRx might enhance its competitive stance. For instance, insights gleaned from these sources could suggest the potential for GoodRx to expand its partnerships with pharmacies or to explore new service areas like telehealth, in response to competitor movements and customer demand trends.
Challenges in competitive analysis include data overload, access to data, rapidly changing market conditions, and the difficulty of comparing diverse competitors with different business models. Product Managers must discern which data is most relevant and how to leverage that information to create actionable strategies.
Choose an industry and conduct a high-level competitive analysis. Identify the main competitors, and analyze their Strengths, Weaknesses, Opportunities, and Threats (SWOT). Consider how market trends might impact these competitors and identify potential areas for product differentiation.
Market Trend Analysis [ | ]
SWOT Analysis [ | ]
Product Differentiation Strategies [ | ]
Consumer Behavior Analysis [ | ]
Regulatory Impact on Industry Dynamics. [ | ]