Look beyond direct rivals
Indirect competitors and substitutes quietly take the same customers.
Volume 08, Chapter 3
Competitive Analysis
A competitive analysis that only tells you what you want to hear is not a real analysis. A useful one is honest, even when the truth is uncomfortable.
The Golden Rule
"We don't really have competitors" is almost never true.
Customers always have some alternative, even if it's an indirect one, a substitute, or simply not buying at all.
DirectThe obvious rival selling the same thing.
Indirect & substituteA different way to solve the same need.
Do-nothingThe customer simply doesn't buy at all.
Don't compare on price alone
Turnaround, reputation, and guarantees matter just as much.
Be honest where you lose
Including where competitors genuinely beat you makes the claim defensible.
Specific beats generic
"Best in town" is unprovable; a concrete, checkable promise isn't.
1
Definition
Imagine a tailoring shop has always advertised itself as "the best tailor in town." It sounds confident, but it means nothing specific, and every competitor down the street could say the exact same words. A real comparison against two direct rivals tells a more useful, more honest story: not the cheapest, not the fastest, but the only one with a genuine track record of on-time delivery and a real fit guarantee. That claim can actually be checked. "Best in town" never could be.
Competitive analysis
is the disciplined, honest study of who else customers could choose instead of you, and exactly why they'd choose you or the alternative. It's the evidence-gathering step behind Volume 01's competitive advantage, you can't know what makes you different without knowing, specifically, what you're different from.
In One Sentence
"We don't really have competitors" is almost never true, customers always have some alternative, even if it's "make do without" or "drive further to a bigger city." Competitive analysis names the real alternatives, compares them honestly on the factors customers actually care about, and turns "we're different" from a slogan into a specific, defensible claim.
2
Who Counts as a Competitor
Direct Competitor
Another bespoke tailoring shop nearby.
Indirect Competitor
Ready-to-wear clothing stores, a different way to solve "I need an outfit."
Substitute
Borrowing or reusing an old outfit instead of buying new.
Do-Nothing
The customer simply doesn't buy at all this season.
| Type | Example for MANIAC MINDZ |
|---|---|
| Direct competitor | Another bespoke tailoring shop nearby |
| Indirect competitor | Ready-to-wear clothing stores (a different way to solve "I need an outfit") |
| Substitute | Borrowing or reusing an old outfit instead of buying new |
| Do-nothing | The customer simply doesn't buy at all this season |
Competitive analysis that only studies direct competitors misses the indirect ones and substitutes quietly taking the same customers.
3
The Comparison Table
| Factor | Us | Direct Competitor A | Direct Competitor B |
|---|---|---|---|
| Price | ₦18,000/garment | ₦15,000/garment | ₦25,000/garment |
| Turnaround time | 7 days | 14 days | 5 days |
| Fit guarantee | Free adjustment, 7 days | None | Free adjustment, 3 days |
| Reputation | 7-year on-time record | Mixed reviews | Strong, premium reputation |
Filling this table honestly, including where competitors genuinely beat you, is what makes Volume 01's competitive advantage claim defensible instead of wishful.
Memory Trick
A competitive analysis that only tells you what you want to hear is not a real analysis. A useful one is honest, even when the truth is uncomfortable.
4
Example Story: The Analysis That Changed the Message
Here's the full version of the "best tailor in town" story from the start of this chapter.
MANIAC MINDZ had always claimed to be "the best tailor in town", a claim that meant nothing specific and that every competitor could equally claim. A structured comparison against two direct competitors revealed the honest, specific truth: not the cheapest, not the fastest, but the only one with a genuine track record of on-time delivery and a real fit guarantee.
The marketing message changed from an unprovable boast to a specific, checkable promise, exactly the shift Volume 01's brand chapter described as the difference between a real advantage and a decoration.
5
Across Industries
City Kitchen
Easy-to-miss competitorCustomers cooking at home instead of eating out
Nimbus Labs
Easy-to-miss competitorA business simply using a spreadsheet instead of any software
Bright Path Academy
Easy-to-miss competitorHome-schooling, or a larger school with lower fees
| Business | An Indirect Competitor Easy to Miss |
|---|---|
| City Kitchen | Customers cooking at home instead of eating out |
| Nimbus Labs | A business simply using a spreadsheet instead of any software |
| Bright Path Academy | Home-schooling, or a larger school with lower fees |
6
Common Mistakes
Common Mistake #1: "We Don't Have Competitors"
Almost always false, see Section 2's four competitor types.
Common Mistake #2: Only Comparing on Price
Ignores turnaround time, reputation, guarantees, and service, the factors from Volume 01's five advantage types.
Common Mistake #3: A Comparison That Only Flatters You
Defeats the entire purpose, see the memory trick above.
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Quiz Yourself
Quiz 1
Name the four types of competitor.
Direct competitor, indirect competitor, substitute, and "do-nothing."
Quiz 2
Why is "we don't have competitors" almost always false?
Because customers always have some alternative, even if it's an indirect one, a substitute, or simply not buying at all.
8
Practice Exercise
Fill Section 3's comparison table honestly for your own business against your two closest real alternatives (direct or indirect). Where do they genuinely beat you?
9
Quick Summary
Quick Summary
- Competitors include direct, indirect, substitutes, and "do-nothing", not just the obvious rivals.
- An honest comparison table, on the factors customers actually care about, is what makes a competitive advantage claim defensible.
- A comparison that only flatters you isn't analysis.
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