Having competitors is not a bad sign: it proves a market exists. The challenge is working out how to stand out so you are not just another interchangeable player.

Two types of competitor

• Direct: those offering the same solution as you.
• Indirect: those solving the problem another way (including “doing nothing” or a DIY workaround).

A quick analysis grid

For 3 to 5 competitors, note down: their offer, their price, their strengths, their weaknesses and their customer reviews. The recurring complaints in 1- and 2-star reviews are a goldmine: they show you exactly where the market is being poorly served.

• Prices charged and positioning (entry level, premium and so on).
• What customers complain about most often.
• The channel they sell through (shop, website, marketplace, word of mouth).

For example: if three local competitors are well rated but every negative review mentions long lead times, you have found your differentiator — speed. Differentiation isn’t invented, it is discovered in other people’s weak spots.

Key takeaway: analyse direct and indirect competitors, and look for your differentiator in their weaknesses — above all in negative customer reviews.