Competitive Alternatives

In the context of positioning, competitive alternatives are what your target customers would "use" or "do" if your product didn't exist. It's crucial to understand these alternatives from the customer's perspective, not just from your own.

Competitive alternatives are not always direct competitors. They can include:

• Manual processes: Using pen and paper, or a combination of manual tasks.
• General-purpose tools: Using spreadsheets, documents, or presentation software to solve a problem.
• Hiring someone: Hiring an intern, a freelancer, or a full-time employee to do the work.
• Doing nothing: Simply living with the problem and not actively seeking a solution.

Understanding the true competitive alternatives is the first and most important step in the positioning process. This is because your product's "uniqueness" and "value" are always defined in relation to these alternatives.

For example, if your main competitor is a spreadsheet, your product needs to be easier to use and more efficient than a spreadsheet, not just another software product.

Related Concepts:

• The Five Components of Effective Positioning
• Unique Attributes
• Value (and proof)