Chapter 7: Analyzing the Industry and Competition Access Chapter 7 templates and tools from The Product Manager’s Desk Reference (3rd Edition). Learn how to analyze industries, evaluate competitors, apply PRESTO factors, and build actionable competitive insights. Download the chapter abstract and illustration insights. Core Concepts Understanding financial language and statements Cash flow, DCF, and sensitivity analysis Pricing and product cost modeling Building and managing product financials Using ratios and scorecards Ensuring financial alignment across the life cycle Executive Summary One of the key responsibilities for product managers is to establish and maintain competitive advantage for their products in the marketplace. A solid fact base, built on accurate data about their industry and the competition, gives product managers and their teams the edge and expertise to strategize and act with purpose and agility. The more product managers know about their industry and the competition, the greater the credibility they have as product team leaders. Chapter Abstract Product managers need a comprehensive perspective on the business and product strategies of their competitors. This allows product managers to observe how industries are classified, how and why they evolve, and how competitors, as participants in these industries, carry out their work. An industry is composed of companies that focus on the same market segments with similar solutions within a sector. Industries evolve because market forces change. In researching an industry, product managers can consult industry publications; internal reports on trade shows or industry events; analyst coverage; trade associations; governmental reports and websites; standards groups; financial analyst reports; development agencies; syndicated research; university-based research; keyword searches; and field research and interviews. One useful tool in conducting industry research is the PRESTO analysis—political, regulatory, economic, social, technological, and other factors affecting a market or region. Competitor research also includes profiling their products and services. Measurements include revenue, gross margin, market share, customer satisfaction, and portfolio mix. Research may also include how a product complements other offerings. Competitive analysis often focuses on operations, production and development, sales and channels, marketing and education, service and support, technology, and people (culture and organizational behavior). Download the Chapter Abstract > Templates and Diagrams for Chapter 7 Figure 7.1 – Industry Structure Overview Figure 7.2 – Industry Evolution Model Figure 7.3 – Competitive Environment Map Figure 7.4 – Competitive Positioning Framework Figure 7.5 – Competitor SWOT Template Figure 7.6 – Competitive Analysis Summary Grid How These Templates Help Product Managers The templates in Chapter 7 provide a structured approach to understanding industry dynamics and competitive behavior. They enable product managers to assess industry evolution, map competitive environments, evaluate strengths and weaknesses, determine positioning options, and build a fact base that guides product and portfolio strategy. These tools help teams identify opportunities, anticipate threats, and act with confidence in fast-changing markets. Download Illustration Insights > What is the PRESTO analysis used for? PRESTO helps product managers evaluate political, regulatory, economic, social, technological, and other forces affecting an industry or market segment. Why is competitor research important for product managers? It builds a fact base for strategic decision-making, helps identify threats and opportunities, and strengthens credibility with cross-functional partners and executives. What metrics help evaluate a competitor’s product performance? Common metrics include revenue, gross margin, market share, customer satisfaction, product mix, and portfolio breadth. How do industry evolution models support strategy? They show how industries change over time, helping product managers anticipate shifts and position products for future growth. The Product Manager’s Desk Reference, 3e The Product Manager’s Desk Reference, Third Edition is the definitive guide to product management for today’s fast-moving, digital-first business environment. Steven Haines presents a complete, practical body of knowledge covering strategy, execution, cross-functional leadership, and product portfolio management. Updated with modern tools, analytics, and development approaches, it equips product managers and product teams with a repeatable framework to run products as businesses and deliver measurable results. Buy the Book Explore Product Management Training Get In Touch First Name(Required)Last Name(Required)Email(Required)Phone NumberCompany NameMessage(Required) Training a Team? Customized Corporate Training Supercharge Your Team (6+): We tailor proven product management training content to your specific goals, offering a customized program delivered online or in-person to ignite your team’s potential and drive results.
