Jtbd competitive strategy skill

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

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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	-

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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."

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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"

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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).

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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.

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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

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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