Product Managers and Competitor Analysis: A Comprehensive Guide

As a product manager, conducting competitive analysis on potential features can be a significant task. However, it's crucial to approach this process strategically, focusing on delivering value to your users rather than solely competing in feature parity.

The Importance of Competitive Analysis

Before delving into detailed feature comparisons with competitor products, it's essential to ask yourself or your manager, 'Why is this important?' Is there a specific reason to gain detailed information about the competitor's features? Often, these reasons may stem from issues raised during the sales cycle or other strategic objectives. In the past, I have conducted such analyses, but my focus was limited to specific issues highlighted by our sales teams during our proof-of-concept (POC) or competitive bake-off.

While certain aspects like file format support, browser compatibility, and third-party product integration might be relevant, the primary objective should be value delivery. This involves addressing the right use cases and enhancing ease of use and productivity, which cannot be fully understood through feature comparisons alone.

Ethical and Strategic Approach

One valuable lesson I have learned over the years is that the outcome of effective competitive analysis should provide strategic insights to support sales and marketing efforts, enabling you to successfully discount competitors when necessary. This analysis is not ideal for making tactical product requirements decisions. Instead, it should inform your strategy and enable you to focus on delivering value to your users.

If you still wish to conduct a thorough feature comparison, there are several ways to gather the necessary information today. These include signing up for a competitor's free trial, downloading evaluation copies, accessing their documentation, and attending competitor webinars. Additionally, engaging with customers who have used these products can provide valuable firsthand insights. Be mindful, however, to adhere to your company's ethical guidelines and rules. For instance, do not impersonate anyone when securing free trials or downloading evaluation copies.

Strategic Focus and Ethical Research

The goal of any competitive analysis should be to gain strategic insights that help your sales and marketing teams. Focus on understanding how the competition addresses specific customer needs and how your product can best meet those needs. Use this information to craft a compelling value proposition that resonates with potential customers.

Remember that your primary focus should be on delivering value through addressing the right use cases and enhancing ease of use and productivity. Feature comparisons can help identify areas where you may need to take action, but they should not be the sole driver of your product strategy.

In conclusion, while conducting competitive analysis is a valuable tool, it should be approached with a strategic mindset and adherence to ethical guidelines. By focusing on value delivery and not just feature parity, you can better position your product for success in the marketplace.