Chapter 1: Understanding Competitor Market Mapping

In the realm of product management, distinguishing between essential information and mere background noise is vital. Two influential texts on software business strategies that I highly recommend are Geoffrey Moore's Crossing the Chasm and The Gorilla Game. Having led product management teams in several major enterprise software companies, I've encountered various challenges, particularly in filtering out distractions caused by competitors' actions. For instance, our sales teams would often overreact to issues raised by rivals during sales discussions. A practical solution that emerged was the creation of a detailed market map that encapsulates competitor revenues, headcount, VC funding, and enterprise value.

This article will delve into:

• The necessity for product managers to create a competitor market map
• An illustrative example of a market map
• Step-by-step guidance on constructing a competitor market map
• Incorporating public and private company competitors

The Value of a Competitor Market Map

A competitor market map provides a comprehensive overview of a competitor's financial standing, workforce size, funding status, and enterprise value for publicly traded companies. This visual representation aids product managers in contextualizing competitors' capabilities and resources, fostering informed discussions about market positioning within their organizations. Gaining insights into these financial metrics can enhance product managers' research acumen and bolster their financial literacy.

Chapter 2: A Case Study in Sales Enablement Tools

Recently, I participated in a project focused on sales enablement tools, which facilitate the creation, organization, dissemination, and performance analysis of sales content such as presentations and training videos. These tools can be likened to a more robust version of SharePoint, enhancing sales training and performance assessment through advanced analytics.

As part of this project, we developed an initial competitor market map, which proved invaluable. The map clarified the competitive landscape and highlighted that two vendors had collectively secured $300 million in recent funding. Such straightforward data regarding revenue, employee count, and funding sources allowed the team to effectively identify the market leaders and the emerging players.

Constructing a Competitor Market Map

Creating a competitor market map is a straightforward process, with distinct approaches for publicly traded and privately held companies.

#### Incorporating Public Company Competitors

Publicly traded companies are obligated to submit regular reports to regulatory bodies like the SEC in the U.S. These reports include comprehensive financial documentation, such as income statements, balance sheets, and cash flow statements. Timely and accurate reporting is crucial, as discrepancies can lead to severe penalties.

Accessing this information is simplified through online searches, allowing product managers to gather essential data for their market maps. Key metrics to include are:

• Revenue figures
• Employee count
• Enterprise value

For product managers seeking to deepen their financial understanding, several articles offer valuable insights, such as why financial literacy is essential for SaaS product managers and the importance of understanding various financial statements.

#### Incorporating Privately Held Company Competitors

Unfortunately, there is no centralized repository like the SEC for privately held businesses. However, the same search techniques utilized for public companies can often apply here as well. Numerous free resources, such as Latka.com, Owler.com, and CrunchBase.com, provide useful information regarding private companies' metrics.

When necessary, employing a technique known as the "headcount proxy" can help estimate revenues when direct data is unavailable. This involves analyzing revenue-to-headcount ratios from public companies and applying them to the private competitors under study.

Recap

Navigating the complexities of competitor dynamics is a daily challenge for product managers. By establishing a market map that outlines competitors' financial data, workforce size, VC funding, and enterprise value, product managers can cultivate a grounded perspective for strategic discussions. Constructing such a map is both efficient and feasible, utilizing a variety of accessible resources.

Originally published at Development Corporate.