Learning Objectives
- Analyse competitors strategically rather than emotionally.
- Identify direct, indirect, and substitute competitors.
- Understand market categories and why they matter.
- Conduct a competitive positioning analysis.
- Discover positioning gaps in the market.
- Develop a differentiation strategy for KIAGO TECH products.
- Avoid competing solely on price.
From the Head of Strategy — Segun Adeyemi, Co-founder & Head of Strategy & Development
One of the first questions founders ask is: "Who are our competitors?" It sounds simple. It isn't. Many startups define competitors too narrowly. Others define them too broadly. Some become obsessed. Others ignore competitors completely. Both are mistakes.
“We do not study competitors because we want to copy them. We study competitors because we want to understand the market — and find the position only we can own.”
Competitor research should answer: What expectations already exist? Which customer problems remain unsolved? What do customers love? What frustrates them? Where is everyone competing — and, more importantly, where is nobody competing? The goal is not to become a better copy. The goal is to become the obvious choice.
Competition Is Bigger Than You Think
Kiachow may think its competitors are restaurant management platforms. But a restaurant owner compares Kiachow with a notebook, Microsoft Excel, WhatsApp, a manager's memory, existing staff routines, another software platform — or doing nothing at all. The real competition is how customers currently solve the problem.
The Four Types of Competitors
Understanding Market Categories
Customers understand products by placing them into familiar categories. When someone hears "restaurant management software" they immediately expect inventory, sales reporting, staff, ordering, payments. Categories simplify decisions — but they can also limit perception. Creating a new category can make you a market leader, but it can also confuse customers. Early-stage startups often benefit from entering a familiar category while clearly explaining how they are different. Clarity before originality.
The Competitive Positioning Map
Choose two attributes customers care about — for example Ease of Use vs Automation — and plot every competitor. The goal is not simply to occupy empty space. The goal is to occupy valuable space.
The Danger of Competing on Price
Lower prices can reduce profitability, attract customers who switch easily, make growth difficult, and trigger price wars. Instead of asking "How can we become cheaper?" ask "How can we become more valuable?" Value creates pricing power.
Finding Positioning Gaps
- Which customers are underserved?
- Which frustrations remain unsolved?
- Which workflows remain complicated?
- Which industries receive little attention?
- Which customer segment feels ignored?
Meaningful Differentiation
| Weak differentiation | Meaningful differentiation |
|---|---|
| Different logo | Easier onboarding |
| Different colours | Better customer support |
| Slightly cheaper pricing | Faster setup |
| More features nobody requested | Nigerian-focused workflows |
| Copying competitor claims | AI automation that reduces manual work |
Long-term advantage comes from capabilities that are hard to copy: deep customer understanding, strong community, exceptional service, consistent execution, brand trust, high-quality educational content, continuous innovation. Anyone can copy features, prices, and website design. Almost nobody can copy discipline.
Case Study — Kiachow vs Kiavendor
Three restaurant platforms compete. Platform One says "Most Features." Platform Two says "Lowest Price." Kiachow says: "The fastest way for Nigerian restaurants to reduce food waste, automate daily operations, and grow profitably." Business outcomes beat feature counts.
For Kiavendor, competitors say "Create your online store." Kiavendor instead says: "Sell everywhere, manage everything, and grow your business from one platform." The positioning evolves from describing software to describing business progress.
Workshop · Exercise 1 — Competitor Mapping
For Kiachow or Kiavendor, identify five direct, five indirect, and five substitute competitors. For each, document target customer, main promise, pricing approach, biggest strengths, biggest weaknesses, and customer perception. Then answer: where is the biggest opportunity?
Workshop · Exercise 2 — Opportunity Statement
“Most competitors focus on ____________, while KIAGO TECH will become known for ____________.”
Reflection
- Who is our biggest substitute competitor?
- Which customer problem remains poorly solved in the Nigerian market?
- Are we competing on price, features, or outcomes?
- What perception do we want to own that no competitor currently owns?
- If a competitor copied all our features tomorrow, what advantage would still remain?