Spying on the Competition

The Competitive Analysis is one of the first critical steps in designing a solution. While user-centered design focuses on user needs and tasks, and information architecture focuses on content, these two aspects alone offer an incomplete picture. What is missing is the context: the environment in which the website or web application is used as well as the market in which it exists.

Boxes and Arrows has an excellent article on understanding the market context. In addition to the usual reviews, here are a few other things to try.

1. Be a customer. Buy the competition's product at least once. Testing the competitor's ability to serve you will reveal much about their business. It's the only way to gain first-hand experience with the company's products and services.
2. Find out as much as you can about the people who run competing businesses. Where did they go to school? Where have they worked? How long have they been in the business? What are their strengths and weaknesses? This information can help you anticipate your competition's moves.
3. Talk to your competitors' customers. Why do they buy from your competitors? Is it because of the quality of the product or service, the price, the location, or the customer support? What do they dislike about the company? What do they wish that company would provide? Why don't they buy from you?
4. Talk to your competitors' staff.  This can be a tricky one depending on the loyalty. There always tends to be at least one sour apple in the bunch. Treat them to a dinner and a world of information awaits by the end of the evening.
5. Buy stock in your competitors. If you're competing against a publicly traded firm, consider buying a few shares of its stock. That way you'll receive regular updates on the firm's financial results and business strategies.