Competition is an act or process of working to achieve a desired result or a win that other startups are also looking to conquest. Not limited to the business entities on your horizon but also invisible strong players who can act fast and hard to do things better than you, after seeing your idea or presence in the marketplace. Competition analysis is the vital element for your startup to make a mark in the minds of an investor, for a truly winning pitch deck.
With the advent of new year, let us resolve to imbibe and follow these 5 formidable strategies to analyze and inch ahead of your competitors on the finish line and realizes your vision. The competition slide of your investor pitch deck is not just critical but help your startups to align with the on-ground reality of the business.
1. Identify and address customer pain point(s)
A vital question but often missed in competition analysis is to ask, “whether the existing solutions in the market address the right segment or the right need of the customers.” Do not just stop at analyzing the product or service features of competition meeting customer needs but also undertake an exhaustive review of the customer complaints pertaining to the existing solutions to identify and address pain points of the real customer.
2. No rival is not always a good sign of the success
“We are unique” or “Our product is the only solution” or even “We have no competition” is not enough to excite investors as innovation warrants patent not money first. Absence of competition reflects poorly on the worth of your idea as insignificant market potential and insufficient competitive analysis. Investors have a penchant for investing in sizeable (US $ 100 million and above) markets over untested, insignificant markets.
3. Know who are your competitors?
The competitors you pick for analysis speaks volume about your own competency. Investors gauge the potency of insights drawn and soundness of decisions taken on the basis of competitor pool identified for analysis. To engage investors, it is insufficient to appraise industry leaders, covering vast array of competitors big or small, direct and indirect for a comprehensive analysis is indispensable. Include at least one competitor from same customer – same solution, same customer – different solution, and different customer – same solution categories.
4. Who funded your bete noire?
An often under looked aspect of competition analysis is to find out which VC or angel investor funded how much and when to your bete noire in the business. This will generate actionable insight on the quantum of fund possible and which VC will not cannibalize its own investment. Missing names of investors on the competitive landscape can help tailor made pitch deck to focus on the priorities of VCs who do not wish to miss the golden chance again.
5. Technology is beyond imagination
Always aim at inventing tomorrow’s competition along with analyzing past credentials. In today’s digital world, technology affects competitive advantage, as every value activity embodies technology. Covid-19 pandemic has positioned technology as the disruptive force for any industry or business models. Technological comparison of competitors is crucial, as it can help serve customers better, reduce costs and bring actionable information faster in no time.
The right market strategy and an apt distribution channel for your startups to garner market share or customer conversions is a direct consequence of an intense competition analysis.
For your startups, better solutions are waiting ahead if you embrace competition with right analysis in your pitch decks. Ace your business with AlphaValley today!