Competitive Analysis - A case study on ticket market places
What is competitive analysis?
Competitive analysis is the trade of analyzing your business, products, features and various other metrics against your competitors. This is a continuous task done for the entire product lifecycle essentially to understand the competitive landscape and to position your products better in the market. To perform an effective research, you need a pretty good understanding about your own product before you can research about your competitors.
Competitive analysis is also useful for new products that you are considering to build in the future. By researching about the competitive offering of similar products, you tend to get a better rationale on all or some of the below points
1) What is the problem being solved and what is the value proposition for the customer and the organization
2) What types of target customer segments are you looking at vs your competitors
3) What is the market size estimation for the product? What could be the fiscal opportunity based on a calculated market penetration
4) How big and great you want to build your product on a competitor relative scale
5) What are the minimum viable product (MVP) features you want to include during launch
6) What are the existing issues in competitor offerings based on customer feedback and the data gathered from social channels
And there are much more that you can do by researching your competitors. By doing this research, you will also be able to conclude on product differentiation, meaning, how you would like your product to differentiate against your competitors in terms of various dimensions like target segment, value, features and investment
Types of competitors
There are different types of competitors for any kind of business. They are categorized based on the type of offering and the customer segment they serve. Categorizing them helps you to clearly understand the level of intersection that you have with your competitors and understand future threats if any.
a) Direct competitors
These are competitors who are solving the same problem for the same set of customers that you are solving for
b) Indirect competitors
These are competitors that are solving the same problem in a different way. Their customer segment intersects with yours or it could be a subset or a superset of yours entirely.
c) Potential competitors
These are competitors who address your type of customers as well but they are solving a different problem for them. However, these competitors pose the threat of becoming your direct or indirect competitor at any point in the future.
Know the pluses and minuses of your competitors
While doing a competitor research, it is important to understand the positives and negatives of competitors and their products. This helps to comprehend on the strengths, weaknesses and the next set of moves from the competitors. It is also good to research about the leaders in the competitor organizations so that you get a better picture of their experience and insights which might potentially translate into future vision.
Knowing precisely about the plans of your competitors in current and next few years is valuable. It is also good to compare yourself with your competitors on dimensions like GMV, revenue, size of user base, brand name, public opinion, design and user experience, prices, agility and intellectuality of engineering team etc.
Feature table
Feature table is a simple but powerful in assisting to perform competitive analysis using all the above said dimensions. It is also useful to list and plan out the features you want to build out by knowing clearly who is offering what. Feature table is nothing but a matrix of a bunch of items in the Y axis and a bunch of competitors in the X axis. Based on the feature in consideration, you have to say Yes or No for every competitor based on whether they are offering. It is important to keep the feature description concise and take a note of pluses and minuses of the competitor with respect to the feature.
Case Study on ticket market places
I have done a case study of the event ticketing market landscape by comparing my organization - StubHub - against our competitors. Instead of focusing on all the zillion aspects, I wanted to limit the research to only a core set of features or products that is available for the users in the web experience. Also the below research focuses only on the buyer segment and not the seller segment of the market. It does not focus on the user experience or design but rather focuses on the product features that are available for the users. However, it is imperative to consider all the business and product dimensions for an exhaustive research.
Competitive analysis is the trade of analyzing your business, products, features and various other metrics against your competitors. This is a continuous task done for the entire product lifecycle essentially to understand the competitive landscape and to position your products better in the market. To perform an effective research, you need a pretty good understanding about your own product before you can research about your competitors.
Competitive analysis is also useful for new products that you are considering to build in the future. By researching about the competitive offering of similar products, you tend to get a better rationale on all or some of the below points
1) What is the problem being solved and what is the value proposition for the customer and the organization
2) What types of target customer segments are you looking at vs your competitors
3) What is the market size estimation for the product? What could be the fiscal opportunity based on a calculated market penetration
4) How big and great you want to build your product on a competitor relative scale
5) What are the minimum viable product (MVP) features you want to include during launch
6) What are the existing issues in competitor offerings based on customer feedback and the data gathered from social channels
And there are much more that you can do by researching your competitors. By doing this research, you will also be able to conclude on product differentiation, meaning, how you would like your product to differentiate against your competitors in terms of various dimensions like target segment, value, features and investment
Types of competitors
There are different types of competitors for any kind of business. They are categorized based on the type of offering and the customer segment they serve. Categorizing them helps you to clearly understand the level of intersection that you have with your competitors and understand future threats if any.
a) Direct competitors
These are competitors who are solving the same problem for the same set of customers that you are solving for
b) Indirect competitors
These are competitors that are solving the same problem in a different way. Their customer segment intersects with yours or it could be a subset or a superset of yours entirely.
c) Potential competitors
These are competitors who address your type of customers as well but they are solving a different problem for them. However, these competitors pose the threat of becoming your direct or indirect competitor at any point in the future.
Know the pluses and minuses of your competitors
While doing a competitor research, it is important to understand the positives and negatives of competitors and their products. This helps to comprehend on the strengths, weaknesses and the next set of moves from the competitors. It is also good to research about the leaders in the competitor organizations so that you get a better picture of their experience and insights which might potentially translate into future vision.
Knowing precisely about the plans of your competitors in current and next few years is valuable. It is also good to compare yourself with your competitors on dimensions like GMV, revenue, size of user base, brand name, public opinion, design and user experience, prices, agility and intellectuality of engineering team etc.
Feature table
Feature table is a simple but powerful in assisting to perform competitive analysis using all the above said dimensions. It is also useful to list and plan out the features you want to build out by knowing clearly who is offering what. Feature table is nothing but a matrix of a bunch of items in the Y axis and a bunch of competitors in the X axis. Based on the feature in consideration, you have to say Yes or No for every competitor based on whether they are offering. It is important to keep the feature description concise and take a note of pluses and minuses of the competitor with respect to the feature.
Case Study on ticket market places
I have done a case study of the event ticketing market landscape by comparing my organization - StubHub - against our competitors. Instead of focusing on all the zillion aspects, I wanted to limit the research to only a core set of features or products that is available for the users in the web experience. Also the below research focuses only on the buyer segment and not the seller segment of the market. It does not focus on the user experience or design but rather focuses on the product features that are available for the users. However, it is imperative to consider all the business and product dimensions for an exhaustive research.
S.No | Features | Ticketmaster | Stubhub | Vivid Seats | LiveNation/TicketsNow/TicketWeb | SeatGeek |
1 | Ability to enter promotional codes in event page and see discounted ticket prices | Yes | No | No | No | No |
2 | Show American express points in event page | Yes | No | No | No | No |
3 | Mix both primary and resale tickets in event page listings | Yes | Yes but for few handful events (76ers) | No | No | No |
4 | 3D collector tickets featuring 3D graphics of personalities that acts as both ticket and collectible | Yes | No | No | No | No |
5 | Ability to add merchandise items to the order - wand, sword, wrist bands, Lanyards, customized tickets, drink tickets, etc | Yes | No | No | No | No |
6 | Ability to add Parking Pass along with ticket | No | Yes | No | No | No |
7 | Select delivery - fast or slow and accordingly charge delivery fee | Yes | No | Yes | Yes | No |
8 | Let users to Guest checkout and purchase tickets | No | No | Yes - Allows first time buyers to purchase tickets and set the password for their account post transaction | No | No |
9 | Allow buyers to use Amex points for purchasing tickets | Yes | No | No | Yes | No |
10 | Promote official payment method AMEX and give back rewards or points for customers for the transactions made using AMEX | Yes | No | No | No | No |
11 | Support more less common payment methods - Amex express checkout, Diners club, master pass etc | Yes | No | No | No | No |
12 | Provide ability for Buyers to insure their tickets for an additional amount - for eg: Ticketmaster partners with Allianz Insurance company so that buyers can have their ticket cost reimbursed in case they could not go for the event | Yes - Allianz Insurance | No | Yes - Allianz Insurance | Yes - Allianz Insurance | No |
13 | Show Preferred seller listings in event page listings - Preferred sellers are longstanding partners with the ticket marketplace that provide exceptional inventory and service | No | No | Yes | No | No |
14 | Run promotions for the current occasion in home page. For eg. Valentine promotion in home page (2 for 1 tickets) takes the users to different event selector page to choose events that are elgibile for valentine promotion | Yes | No | No | Yes | No |
15 | Flex pack tickets - tickets for some of the events are sold for a discounted price in ticket deals page, only a bunch of events are eligible for flex pack tickets | Yes | No | Yes - Vivid Value $ for buying packaged tickets | No | No |
16 | VIP
packages - The VIP package includes a premium seat, special souvenir gift and
exclusive access to theater characters Sports Packages - Tickets with sports merchandise and pregame perks Theater Packages and family packages Some packages include discounts if a bunch of tickets are purchased |
Yes | No | Yes | No | No |
17 | Are Tickets secured for customers for a limited time with a counter running in the page | Yes | No | No | Yes | No |
18 | Provide more information to fans and build your brands expertiese and credibility - For example blog about price trends, demand of current events, about the most famous artists and their forthcoming events, share news and experiences of fans. Search engines love new content and rank such sites much better | Yes (Ticketmaster Insider) | No | Yes - Fandemonium vivid blog | Yes (Ticketmaster Insider) | Yes - SeatGeek Event News |
19 | Corporate Ticket Program - takes care of tickets, hotel packages and other hospitality programs | No | No | Yes | No | No |
20 | Affiliate Program to drive traffic from partner sites to marketplace. Partner earns commission on transactions and payments are distributed on a monthly basis | No | No | Yes | Yes | No |
21 | Lists all the on sale events in home page | Yes | Yes - not all on sale events but some rotate in the banner | Yes | Yes | No |
22 | Youtube Channel that hosts fan experience of events - captures fan reactions and experiences | Yes | Yes - but not very active | Yes - Fandemonium vivid blog | Yes | No |
23 | Price stats and guidance - drop or up for an event overall. Notify customers by email to keep them informed how an event market looks like | Yes | Yes - using price assistant | No | Yes | No |
24 | Single Order Lookup to get order details without asking buyers to login | No | No | Yes - uses order id and order email to lookup order details | No | No |
25 | Sell a set of tickets from selected sections through deal aggregator sites - groupon, livingsocial, facebook etc | Yes | No | No | No | Yes |
26 | Newsletter for fans about events in their city | No | No | No | Yes | No |
27 | Presales done leveraging partnership with payment providers, fan clubs etc | Yes | On sale is available but not presale | No | Yes | No |
28 | Connected Services - Import favorite artists from FB, Spotify, Pandora into web my account | Yes | Yes - can scan mobiles itunes, can import friends and their favorites from FB | No | Yes | Yes |
29 | Gift cards - eGift and Plastic Gift cards | Yes | Yes | Yes - Promo codes only | Yes | Yes - Promo codes only |
30 | Top Concerts, Top Sports & Top theater tickets | Yes | No | Yes | Yes | Yes |
Labels: Competitive Analysis, Product Management, Techie Talk