The first thing to do after an innovation is decided for a product or service is to perform a product competition analysis. The product competition analysis makes it possible for companies to get comparative insight into products already available on the market with respect to their price, quality, customer preference, brand strength, etc. Thus, the company will be able to make a clear decision about what to keep in the forefront when concentrating on a new product or technology. Products with much higher functionality or superior technology can be achieved in projects that are performed without product competition analysis, but it may become difficult to achieve the desired commercial success since the customer’s preference is not in that direction.
In innovation decisions made without performing a product competition analysis, the company executives are likely to make emotional decisions thinking that “this product on the market is sold more, therefore we need to develop a product of that type”. However, such a decision could be correct, but it can also turn out to be wrong. Product competition analysis is reliable in that it provides measurable results which can serve as support for such emotional decisions.
Kordinat recommends its customers to perform product competition analysis especially during new product development activities.