/ Opening

Your Competitor May Not Look Like You

Companies organize markets by category. Customers organize decisions by what they are trying to do.

TONIGHT AT 9:00

What competes with Netflix?

TAKEAWAYCompetition begins wherever the same money, time, attention, or need can go instead.

/ Vote

Which of these compete with Netflix tonight?

Select any option that could replace the same time or satisfy the same need.

TAKEAWAYA substitute does not need to look like the product. It only needs to win the decision.

/ Reveal

Categories describe products. Competition describes choices.

The relevant set changes depending on the job the customer is trying to accomplish.

ENTERTAIN ME

Streaming · gaming · social video

HELP ME UNWIND

Sleep · music · reading · a walk

HELP ME CONNECT

Dinner · texting · group gaming

USE MY TIME WELL

Work · learning · exercise

TAKEAWAYThe customer’s need defines the competitive field in the moment.

/ The Basics

Four kinds of competition

Map all four before deciding who matters.

DIRECT

Similar offer

Netflix vs. Disney+

INDIRECT

Different format, related solution

Netflix vs. YouTube

SUBSTITUTE

Different way to satisfy the need

Netflix vs. gaming or dinner

STATUS QUO

No change or no action

Keep the current habit; buy nothing

TAKEAWAY“Do nothing” is often the most successful competitor.

/ Switching Costs

The best product does not automatically win

Customers may stay with a weaker option because moving creates work or risk.

MONEYFees, lost discounts, setup cost

TIMELearning, migration, research

RISKWhat if the new choice fails?

IDENTITYWhat does switching imply about me?

RELATIONSHIPSInternal politics, partners, family

HABITThe current choice requires no new decision

TAKEAWAYCompetitive advantage includes making the switch feel worth the cost.

/ Team Challenge

Map the real competitive field

Choose one case and build the alternatives the customer is actually comparing.

TWO-YEAR MBAURGENT CAREB2B SOFTWAREMUSEUM MEMBERSHIP

LIST: 3 direct · 3 indirect/substitutes · the status quo · strongest switching cost

TAKEAWAYDo not use the category label as the boundary of the market.

/ Pressure Test

The most important competitor may win for a different reason

Do not assume every alternative is evaluated on the same criteria.

1.Which alternative wins most often?

2.What job or fear does it satisfy better?

3.What switching cost protects it?

4.What would make the customer reconsider?

TAKEAWAYStrategy improves when it addresses why the alternative wins—not only how your product differs.

/ Example

A two-year MBA competes with more than other MBA programs

The prospect is deciding how to improve a career—not only which school to attend.

DIRECT

Other two-year MBA programs

ADJACENT

Part-time MBA · specialized master’s · online MBA

SUBSTITUTES

Stay in role · switch employers · certificate · start a business

STATUS QUO

Delay because cost, risk, family, or uncertainty is too high

TAKEAWAYThe strongest message may need to beat delay, risk, and career alternatives—not another school’s slogan.

/ Close

Your market is the customer’s choice set

Industry categories help organize companies. They do not fully explain customer decisions.

DIRECTLooks like us

SUBSTITUTESolves the need another way

STATUS QUOAvoids the decision

TAKEAWAYAsk what else can win the same money, time, attention, or outcome.