Assessing Competition for Innovative Products: A Comprehensive Guide

When it comes to launching an innovative product that hasn't been invented before, the concept of competition takes on a unique form. Most of the perceived competition is not from other startups or established companies like Google or Apple. Instead, the competition often lies in user apathy, a lack of interest or engagement that can hinder the success of any new product. Therefore, the best approach to assessing competition is to engage directly with the users who might be faced with the problem your product aims to solve.

Engaging with the True Competition

Since your product is likely the solution to their problems, potential users are more likely to discuss the issues they face and openly share their thoughts with you. This direct interaction allows you to gather valuable insights that will shape your product and its marketing strategy. True competitive analysis is still crucial, as you need to be able to answer questions such as whether your product provides a better solution than existing alternatives.

Understanding the Value Proposition

The first step in assessing competition is to clearly define the problem your innovative product solves. Once you have identified the problem, look at the solutions already available in the market for that same issue. These solutions serve as your competition. However, the real challenge lies in determining whether your product offers a better solution to the target customer base or a particular segment of customers.

Identifying the Next Best Thing

The most effective way to assess competition is to identify the “next best thing” – products that share similar functions and serve the same consumer base. For example, if you invent a new product like cinema, you need to consider other traditional media forms like newspapers, radio, and theater. Each of these shares roughly the same function, serving as a means to relay information and provide entertainment. Even though you're creating a new demand, your product still faces competition from similar functions in consumer budgets.

The Same Logic Applied to Other Products

Similar logic applies to other product categories. If your innovative product is a female skin or hair care product, it will face competition from other similar products within the same budget constraints. The same is true for a motion-detection-based security system, which would compete not only with other automated security systems but also with private security companies that rely on human guards.

Conclusion

Ultimately, any new product can be assessed by understanding the next closest alternatives. Even groundbreaking innovations like smartphones or the internet in their early days followed this same principle. By engaging directly with potential users and considering the next best thing, you can effectively assess and overcome competition. This approach will not only help you in launching your innovative product successfully but also position you to continuously refine and improve your solution based on real user feedback.