On strategic differentiation
Why would people move from the existing solution they use?
It's essential to consider your competitors to build a hypothesis on how you'll win the competition. How will your product be different? Why do people want to use your product over the other existing solutions? Differentiation is a critical aspect of the product market fit.
Switching cost
If your product has clear differentiation, people will consider changing to your product. Otherwise, the switching cost could be high.
Who's your direct competitor?
The first logical step is to identify the competitors. You always have direct competitors—alternative products that people currently use to solve their problems. Usually, these competitors offer a similar value proposition. List them down.
Who's your indirect competitor?
Indirect competitors might not offer a similar value proposition, but it is viable for users to get the job done. A gym membership competes indirectly with a yoga app.
Identify your unique attribute
Knowing all of the competition landscape, what's your unique attribution? How would you make your product unique? There's no secret sauce here. Thinking through your company's or the founder's strengths can be one way to do it.
Hard to copy