Find a niche or unique selling point competitors are not filling.
Identify the most important competitors and list their offerings. See what needs are unaddressed by the competition. If you can deliver on those, you have found your niche.
- A willingness to offer something unique.
- A clear idea about who the competition is (also outside your domain).
- A precise understanding of your competitor’s strengths and weaknesses and what they mean for you (e.g. with a SWOT analysis).
- Clarity about what your users want in addition to your competitors’ offerings.
Many companies require a competitive analysis before ‘real money' is spent on a project. Large-scale competitive analyses often include a field study as well, to identify user needs.