Why your real competition isn’t who you think it is

When I ask you, “Who are your competitors?” you might be able to name a few businesses right away. Probably the big ones. Most likely, the market leaders. But let me ask—have you actually confirmed that through research, or are you just naming the ones that come to mind?

In my experience, many businesses assume they know who they’re competing with, but often that assumption is based more on perception than reality. And that gap between perceived and real competitors can lead to poor positioning, wasted marketing efforts, and missed opportunities.

So in this post, I want to unpack why your real competitors might be very different from the ones you think you’re up against—and what to do about it.

1. What are competitors, really?

We often think of competitors as other businesses offering similar products or services. But that’s only part of the picture. Let me put it this way: a competitor is anything your customer might choose instead of you to get a certain job done.

You might run a paid service and assume you’re only competing with similar businesses. But what if your customer is solving their problem using a free app—or even asking a friend or family member for help? Those are competitors, too. They might not look like you, operate like you, or even charge money. But if they’re taking the spot you want in your customer’s life, they’re competing with you.

This is why broadening your view of what counts as competition is the first step toward real strategic clarity.

Also notice how I said: “to get a job done.” That part matters. Because to define your competition properly, you need to first understand what job your product or service is helping the customer accomplish. And to know that, you need to identify who your customer really is—not just demographically, but situationally.

This way of thinking aligns with Jobs to Be Done Theory, which suggests that people “hire” products or services to make progress in specific situations. It also connects to Utility Theory in economics, where customer choices are seen as efforts to maximize perceived value or satisfaction. Together, these frameworks help you step beyond traditional categories and uncover what truly drives customer decisions.

Take a moment and ask yourself: what is the job you’re being hired to get done?

2. It’s not you—customers decide your competitors

You don’t get to decide who you’re competing with. Your customers do.

Let me explain with an example. Say you’re selling chewing gum. You might assume you’re competing with other gum brands. Or, if you’re thinking a bit wider, maybe with candy and mints.

But now picture this: your typical customer is a long-distance driver. Why are they buying your gum? Not necessarily for the taste—it might be to stay alert or avoid boredom while driving. That’s the job to be done.

Now you’re not just competing with candy. You’re potentially competing with podcasts, music, phone calls—anything that keeps the driver’s mind active.

In fact, podcasts and gum might even be used together. But the key insight is this: your competition isn’t defined by category, but by context. What else could your customer use to get the same job done in the same situation?

3. How to find your real competitors

So how do you discover these hidden competitors?

Start by identifying a specific moment or situation in which your product or service is used. Then, talk to real customers. But don’t just ask why they use your product. That often leads to surface-level answers like “It tastes good” or “It’s cheap.”

Instead, dig deeper:

• When do they use it?
• What are they trying to accomplish?
• What else did they consider using in that moment?

For example, instead of asking, “Why do you chew gum?”, ask, “What do you do on long drives to stay focused or entertained?” This opens the door to understanding the real goal, which is staying mentally alert—not flavor or freshness.

Once you uncover that goal, you can start to map out what other tools, services, or behaviors might help your customer achieve the same outcome. That’s your true competitive landscape.

4. Expand your list of competitors

After talking to customers, expand your list further through research:

• Use Google to search for different ways people solve the same problem. Try multiple keywords or phrasing.
• Check forums like Reddit, Quora, or niche communities (e.g., TruckersReport for drivers).
• See what people suggest to others in similar situations.

The goal is to build a situation-based competitor list. One that’s grounded in actual usage, not just industry labels. And remember: repeat this process across different use cases or customer segments. Your competition can change based on situation, and each deserves its own analysis.

5. Got the competitor list—now what?

The next step is to build a competitive canvas—a tool introduced in Blue Ocean Strategy. It helps you visualize how different players in the market (including nontraditional competitors) perform across key value dimensions.

Here’s how:

1. List 5–7 factors customers care about in your situation (e.g., boredom relief, ease of use, price, availability).
2. Score each competitor—including yourself—on each factor (e.g., 1 to 5).
3. Plot the results on a line graph.

This will reveal where your product stands out—and where it doesn’t. It also shows if your strength is meaningful to the customer in that specific situation.

If your strongest feature doesn’t align with what your customer cares about in that moment, that’s a clue. You may want to reposition your offering, or even target a different situation where your strengths matter more.

This approach helps you avoid being boxed into traditional categories—and gives you the flexibility to pivot and compete where you can truly win.

Summary

All in all, the best place to start is by accepting that you might know very little about who you’re actually competing with. It’s fine to begin with some assumptions, but when you talk to customers, avoid steering the conversation to get the answers you want. The goal of those sessions is to understand their perception, specifically, how they mentally lay out the options available to them.

Your business lives in the minds of your customers. You don’t get to dictate where your brand is positioned. But once you understand who you’re truly competing with, you can develop strategies to influence that positioning over time. This insight will guide your brand messaging and value proposition, helping you communicate them consistently across every touchpoint with your audience.