Understand the market before building the product. Validate that a real opportunity exists.
Context
Market analysis is the first analytical step after intake routes work to the discovery phase. It answers: "Is there a market for this?" before investing in specification or architecture. Skip this for internal tools or when the market is already well-understood.
Inputs
None required. This skill can begin from the project context alone.
Process
Step 1: Define Market Scope
Identify the target market segment. Be specific -- "project management for freelance designers" not "project management."
Step 2: Analyze Competitors
Map existing solutions:
- Direct competitors (same problem, same approach)
- Indirect competitors (same problem, different approach)
- Adjacent solutions (related problem, potential pivot)
For each: note pricing, features, strengths, weaknesses, user reviews.
Step 3: Identify Market Gaps
Where do existing solutions fall short? Look for:
- Underserved user segments
- Missing features repeatedly requested in reviews
- Pricing gaps (too expensive or too cheap for a segment)
- UX problems that create friction
Step 4: Assess Market Size
Estimate TAM (Total Addressable Market), SAM (Serviceable Available Market), SOM (Serviceable Obtainable Market). Use bottom-up estimation when possible (number of potential users x willingness to pay).
Step 5: Document Opportunities
Rank opportunities by: market size, competition intensity, team capability fit, and time-to-market.
Outputs
- market-research-report: Competitor map, gap analysis, market size estimates, ranked opportunities with rationale.
Quality Gate
- At least 5 competitors analyzed
- Market gaps identified with evidence (user reviews, forum posts, survey data)
- TAM/SAM/SOM estimated with methodology documented
- Opportunities ranked with clear criteria
Anti-Patterns
- Analysis paralysis -- Spending weeks on research when a week suffices. Set a timebox.
- Confirmation bias -- Only looking for evidence that supports the idea. Actively seek disconfirming evidence.
- Ignoring indirect competitors -- Users solve problems with spreadsheets, email, or manual processes. These are competitors too.
- Vanity TAM -- "The global software market is $500B." Narrow to the specific segment you can actually serve.
Related Skills
- user-research -- runs in parallel to validate personas
- feasibility-study -- consumes market-research-report
- requirements-engineering -- consumes market-research-report