How to Shortlist Your Immediate Competitors in The Market

The Pareto principle says that “roughly 80% of consequences come from 20% of causes”. 

Business leaders, consultants, engineers, product managers, and people across various fields found many examples of Pareto’s principle or the 80/20 rule:

• 80% of crimes are committed by just 20% of criminals;

• 80% of profit comes from 20% of customers; 

• 80% of sales come from 20% of marketing; and many more

In this segment, you will learn more about the Pareto principle and how it is applicable to product management while shortlisting your competitors.

As Tamara mentioned in the video, you cannot focus on each of your competitors. You should apply the 80/20 rule and shortlist your top-most competitors and compete with them.

For Yahoo and in the domain of search engines, Google was the biggest competitor. For Google and in the domain of online advertisement, it is Facebook.

Additional Reading

The 80/20 rule for product managers: Understand the importance of the Pareto rule at different stages of life as a product manager

In the next segment, you will learn about mystery shopping, a way to deep dive into your top competitors.