# JTBD Competitive Strategy

Analyzing competition through the jobs lens and building differentiated positioning.

## Rethinking Competition

### The Traditional View (Wrong)

"Our competitors are companies that sell similar products in our category."

### The JTBD View (Right)

"Our competitors are anything a customer might hire to get their job done."

This fundamental shift reveals:
- Non-obvious competitors you're losing to
- Opportunities in adjacent spaces
- Why customers choose seemingly inferior solutions

---

## Non-Obvious Competition

### Finding Hidden Competitors

Ask: "What else do customers hire for this job?"

| Job | Obvious Competitor | Non-Obvious Competitors |
|-----|-------------------|------------------------|
| Commute entertainment | Other podcasts | Music, audiobooks, silence, phone calls |
| Evening relaxation | Other streaming services | Video games, reading, wine, sleep |
| Learn new skills | Other courses | Books, YouTube, mentors, trial and error |
| Stay informed | Other news apps | Twitter, newsletters, colleagues, podcasts |
| Celebrate achievement | Other restaurants | Home cooking, vacation, gifts, party |

### The Milkshake Discovery

The famous milkshake study revealed:
- **Assumed competitors:** Other fast food beverages, breakfast items
- **Actual competitors:** Bananas, bagels, donuts, boredom itself

The job wasn't "consume breakfast"—it was "make my commute tolerable and keep me full until lunch."

### Mapping Your Competition

**Step 1:** Define the job (not the product category)

**Step 2:** List everything customers currently hire:
- Direct competitors (same category)
- Indirect competitors (different category, same job)
- Non-consumption (doing nothing)
- DIY/workarounds (cobbling solutions together)

**Step 3:** Understand why each gets hired:
- What's the circumstance?
- What dimension does it serve best? (Functional/Emotional/Social)
- What trade-offs do customers accept?

**Example: Project Management Software**

Job: "Keep my team aligned and projects on track so nothing falls through cracks"

| Alternative | Why Hired | Dimension Served |
|-------------|-----------|------------------|
| Asana/Monday | Full visibility, accountability | Functional |
| Spreadsheets | Flexibility, no learning curve | Functional |
| Email threads | Everyone has it, simple | Functional |
| Slack channels | Real-time, casual | Social |
| Regular meetings | Face-to-face accountability | Emotional/Social |
| One person remembers everything | No tool adoption needed | Functional |
| Nothing (hope for the best) | Zero effort | - |

---

## Jobs-Based Positioning

### The Positioning Formula

```
For [customers in these circumstances]
who [have this job to do]
our [product/service]
is the [frame of reference]
that [does the job better because]
unlike [alternative]
we [key differentiator].
```

### Example Positioning Statements

**Traditional (weak):**
"Monday.com is a work operating system that helps teams manage projects and workflows."

**Jobs-based (strong):**
"For growing teams who feel like projects keep slipping through cracks, Monday.com is the work management platform that gives everyone visibility into what's happening without adding overhead, unlike spreadsheets that get outdated or meetings that waste time."

**More examples:**

Slack:
"For remote teams who feel disconnected and out of the loop, Slack is the communication hub that makes you feel like you're in the same room, unlike email that buries important messages or video calls that require scheduling."

Duolingo:
"For busy people who want to learn a language but have always given up, Duolingo is the learning app that fits language practice into small daily moments, unlike courses that require big time commitments or tutors that require scheduling and money."

---

## Competing Against Non-Consumption

### Why Non-Consumption Matters

The biggest competitor is often "doing nothing." People who:
- Haven't realized they have the problem
- Don't think solutions exist
- Think solutions are too expensive/complicated
- Tried before and gave up

### Non-Consumption Opportunities

| Category | Non-Consumer | Why They Don't Consume | Opportunity |
|----------|--------------|----------------------|-------------|
| Financial planning | Young professionals | Think it's for wealthy people | Simplified, low-cost planning |
| Higher education | Working adults | Can't attend campus | Online, flexible degrees |
| Video editing | Small business owners | Too complicated | Simplified, template-based tools |
| Home improvement | Renters, beginners | Feels overwhelming | Step-by-step guidance |
| Mental health | Most adults | Stigma, cost, access | Anonymous, affordable apps |

### Winning Non-Consumers

To convert non-consumers:

1. **Lower the barrier to entry**
   - Reduce price
   - Simplify the experience
   - Remove expertise requirements

2. **Reduce anxiety**
   - Eliminate commitment
   - Provide strong guarantees
   - Show "people like me" success stories

3. **Reframe the job**
   - Make it about a job they already care about
   - Connect to existing behaviors
   - Show quick wins possible

**SNHU Example:**
- Traditional barrier: Campus attendance required
- SNHU reframe: "Get a degree without putting life on hold"
- Job focus: Career advancement, not "being a student"

---

## Price Strategy Through JTBD

### Price Based on Job Value, Not Cost

Traditional pricing: Cost + margin = price
JTBD pricing: Job value to customer = pricing ceiling

**Questions to determine job value:**
- What does getting this job done save/earn the customer?
- What are they currently paying to get it done (including time)?
- How important is this job relative to other spending?
- What's the cost of the job NOT getting done?

### Premium Pricing Justification

Charge more when:
- You serve job dimensions competitors ignore (especially emotional/social)
- You reduce anxiety in high-stakes situations
- You save significant time for time-strapped customers
- You eliminate effort for effort-averse customers

### Price Relative to Alternatives

| Alternative | Price | Job Performance |
|-------------|-------|-----------------|
| Your product | $100/mo | Excellent |
| Direct competitor | $80/mo | Good |
| DIY solution | $0 (but hours/week) | Adequate |
| Doing nothing | $0 | Job not done |

**Frame your price against the cost of alternatives, including their hidden costs (time, frustration, opportunity cost).**

---

## Differentiation Strategy

### Differentiate on the Underserved Dimension

Most competitors fight on functional dimensions. Differentiate on:

**Emotional dimension:**
- How customers feel while using the product
- Confidence, peace of mind, delight
- Reduced anxiety, eliminated frustration

**Social dimension:**
- How customers appear to others
- Status, belonging, identity
- What others think of their choice

### Differentiation Examples

| Product | Functional (table stakes) | Real Differentiation |
|---------|---------------------------|---------------------|
| Mailchimp | Sends emails | Makes small business owners feel like legitimate marketers |
| Slack | Team messaging | Makes teams feel connected and in sync |
| Notion | Documentation | Makes users feel organized and in control |
| Tesla | Electric car | Makes owners feel innovative and responsible |

### The Differentiation Test

Ask current customers:
- "Why did you choose us over [alternative]?"
- "What would you tell a friend about why they should use us?"
- "What would you miss most if you couldn't use us anymore?"

**If answers are only functional, you have a differentiation problem.**

---

## Competitive Response Framework

### When a Competitor Launches a Feature

**Don't automatically copy.** Instead ask:
1. What job does this feature serve?
2. Is that job a priority for OUR customers?
3. Do we serve that job differently/better already?
4. Should we compete or differentiate?

### When Losing Deals to Competitors

Interview lost customers:
1. "What job were you trying to get done?"
2. "What did [competitor] do better for that job?"
3. "Was there anything we did better that wasn't enough?"
4. "What almost made you choose us?"

**Pattern recognition:** If you consistently lose on price, you're not communicating job value. If you consistently lose on features, you might be targeting the wrong customers.

### When Entering an Established Market

Don't compete head-to-head. Instead:
1. Find underserved customer segments (different circumstances)
2. Find underserved job dimensions (emotional/social)
3. Find simpler jobs that incumbents over-serve
4. Find more demanding jobs that incumbents can't serve

---

## Strategic Decision Framework

### Should We Build This Feature?

| Question | If Yes | If No |
|----------|--------|-------|
| Does it help customers do the job better? | Consider building | Don't build |
| Do customers currently struggle with this part of the job? | Higher priority | Lower priority |
| Will competitors match it easily? | Temporary advantage | Sustainable advantage |
| Does it serve our target customer's priority jobs? | Aligned | Misaligned |

### Should We Enter This Market?

| Question | If Yes | If No |
|----------|--------|-------|
| Is there an important job being poorly served? | Opportunity | Crowded market |
| Can we serve it better than alternatives? | Competitive advantage | Why would customers switch? |
| Are the customers we'd serve aligned with our strengths? | Good fit | Resource stretch |
| Is the job stable or growing? | Sustainable | Declining opportunity |

### Should We Worry About This Competitor?

| Question | If Yes | If No |
|----------|--------|-------|
| Are they serving the same job? | Direct threat | Different jobs |
| Are they serving our customers' priority dimensions? | Serious threat | Parallel play |
| Are they better on dimensions that matter? | Urgent response needed | Monitor |
| Can they take our customers? | Defensive action needed | Offensive opportunity |
