How to Do Market Research & Competitive Analysis | Competitive Analysis Framework

Importance of TAM (Total Addressable Market): The speaker emphasizes the significance of having a massive TAM when starting a company. They explain that reputable venture capital firms typically invest in startups with a TAM of at least $20 billion, highlighting the need for a sizable market to achieve substantial revenue. Market Research Strategies: The speaker provides practical strategies for conducting market research. They suggest searching for TAM statistics from consulting firms, exploring annual reports of the 25 largest companies in the target sector, and, if necessary, estimating TAM based on the combined revenue of these top companies. Disruption and Market Existence: The speaker challenges the notion that a market may not exist, using examples like Uber and Google to illustrate that markets may not be disrupted yet but can still be analyzed based on related industries. Competitive Analysis and Industry Leaders: To understand competitors, the speaker recommends studying annual reports of industry leaders to identify strengths and weaknesses. They also advocate for using LinkedIn and Twitter to follow competitors' salespeople and business thought leaders, gaining insights into customer relationships and future strategies. Quantifying Business Model: The speaker stresses the importance of quantifying the business model through data. They argue that without data, one has an opinion rather than a thesis, underlining the need to back up business strategies with quantifiable information for a more solid foundation.