JOURNALSeptember 30, 2026
Who Should B2B Companies Compare Themselves Against? Alternatives You Miss by Looking Only at Industry Peers
Author: Daisuke Irikura (Representative Director, HUV DESIGN OFFICE Co., Ltd.)
Conclusion
Competitive analysis does not begin with listing similar companies in your industry. It begins with identifying the alternatives customers actually compare when solving a particular problem. Alongside industry peers, check whether customers consider handling the work in-house, continuing with an existing supplier, or postponing a purchase. Then narrow your assessment to options customers can compare on the same terms.
This article is not about the definition of positioning. It outlines a process for business leaders to decide whom to compare before creating a competitive comparison table.
What Public Sources Tell Us
The U.S. Small Business Administration (SBA) recommends identifying competitors by product or service and market segment, while also considering indirect competitors.[1] Japan’s Small and Medium Enterprise Agency, in its 2025 White Paper on Small and Medium Enterprises, reports on a survey of SMEs and other businesses conducted in November–December 2024. Many respondents identified “competitors’ characteristics and trends” as the external factor they considered most important when developing management strategies or new businesses.[2] This source describes response patterns; it does not establish a causal relationship between researching competitors and improved business performance.
The following is a practical process HUV proposes based on these sources.
1. Narrow the Focus to One Decision Scenario
“Who are our competitors?” is too broad a question. First, define which customer is making a selection, what they want to achieve, and when they will decide. For example, a decision to continue maintaining existing equipment involves different alternatives and evaluation criteria from a decision to install new equipment. This is an illustrative example, not a case involving a specific company.
2. Ask Customers Which Alternatives They Considered
Review records of won and lost deals and, where possible, ask customers, “What did you consider besides our company?” Look beyond company names to check whether in-house solutions, maintaining the status quo, or postponement were among the options. If you have not seen a competitor’s quotation, do not enter assumptions about its pricing or specifications into the table.
Information to record: The customer’s problem, the alternatives compared, information sources, the date of verification, and unknown items. Separate customer statements from sales representatives’ assumptions.
3. Compare on Equal Terms
For each option, align the scope, quality requirements, delivery schedule, maintenance, work required on the customer’s side, pricing, and payment terms. Also distinguish between features described on public websites and terms offered for a specific deal. Leave items without publicly available information blank; do not label them “inferior.”
Even a completed comparison table does not establish an advantage unless customers value the differences it shows. Put customers’ must-have requirements and reasons for their selection in separate columns. The checklist before discounting can help with decisions on individual deals.
4. Turn the Comparison into Management Decisions
Use the comparison to determine which issue you face: ① you do not meet the must-have requirements; ② you meet them but cannot demonstrate it; ③ you are promoting strengths customers do not want; or ④ you cannot explain the burden of maintaining the status quo or handling the work in-house. Use ① to review your delivery capabilities, ② your supporting evidence, ③ your target customers and value proposition, and ④ the implementation burden and transition support.
Rather than analyzing the entire market at once, start by recording recent relevant deals in the same format, and update the table when the alternatives being compared change.
Limitations
Customers can provide only a limited set of answers, and competitors’ undisclosed terms cannot be verified. Even the same competitor will propose different offerings for different deals. A comparison table is not a definitive market ranking; it is a decision-making resource for a specific customer and use case.
Summary
To begin competitive analysis, first define a single purchasing scenario and verify the alternatives and terms the customer compared. Only with that information can you decide which of your capabilities to retain, where to improve, and what to communicate.
References
[1] U.S. Small Business Administration, Plan your business: Market research and competitive analysis (guidance on identifying competitors by product or service and market, and considering indirect competitors). Accessed: September 30, 2026.
[2] Small and Medium Enterprise Agency, “2025 White Paper on Small and Medium Enterprises, Part 2, Chapter 1, Section 1: Management Strategy.” Response patterns concerning the external environment, based on a survey conducted in November–December 2024. Accessed: September 30, 2026.
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If you would like to clarify what it takes for customers to choose you and what your company can deliver, explore HUV DESIGN OFFICE’s services.
Translated from the original Japanese article. Read in Japanese