Who are our competitors?
⚡ In a Hurry? Quick Answer
Name 2-3 direct competitors and briefly explain how the company differentiates itself. Add a thoughtful observation about the market or an emerging player. This proves you researched and understand the industry.
💡 The Recruiter's Mind
This question tests whether you've done basic research and understand the market. They're evaluating: Did you prepare for this interview? Do you know the industry landscape? Can you think strategically about positioning? Your answer reveals how seriously you're taking this opportunity. Saying "I'm not sure" signals you didn't bother to research, which is a major red flag.
The Informed Answer Formula
- Name specific competitors: Identify 2-3 direct competitors by name
- Show differentiation awareness: Explain what sets this company apart
- Add market insight: Mention a trend, emerging player, or competitive advantage
- Stay respectful: Don't trash-talk competitors—show professional objectivity
Example Answers by Industry
Tech/SaaS Company
"Your primary competitors in the project management space are Asana, Monday.com, and ClickUp. From what I've researched, you differentiate through your superior integrations with developer tools and your focus on technical teams rather than general project management. I've also noticed Notion expanding into this space, though they're approaching it from a different angle with their all-in-one workspace model. Your API-first approach seems to be a real competitive advantage for enterprise clients."
Retail/E-commerce
"In the sustainable fashion space, I see your main competitors as Patagonia, Everlane, and Reformation. What stands out about your brand is your radical transparency on pricing and supply chain—you break down exactly where costs go, which few competitors do. I've also been watching Allbirds expand from footwear into apparel, which could be interesting to monitor. Your B Corp certification and resale program give you credibility that's hard for newer entrants to replicate."
Financial Services
"Your direct competitors in digital banking would be Chime, Current, and Varo. What differentiates you is your focus on financial literacy and the built-in savings tools—competitors focus on convenience, but you're emphasizing financial health. Traditional banks like Chase and Bank of America are also launching digital-first products, so there's competition from both fintech startups and legacy institutions trying to modernize. Your no-fee structure and early paycheck access are clear competitive advantages for your target demographic."
🚫 Red Flags to Avoid
- Saying "I don't know" or "I'm not sure"—this shows you didn't prepare
- Naming only one competitor or being too vague
- Badmouthing or dismissing competitors as inferior
- Confusing competitors with partners or companies in different markets
- Only mentioning competitors you've heard of without explaining why they compete
- Claiming the company has no competition (every company has competition)
- Showing you know the competitors better than the company you're interviewing with
How to Research Competitors Before the Interview
- Check the company's website: Look for "Why [Company]?" or comparison pages
- Read recent news: Search "[Company name] competitors" in Google News
- Review industry reports: Gartner, Forrester, or industry-specific analysts
- Explore review sites: G2, Capterra, Trustpilot often compare alternatives
- Follow industry publications: TechCrunch, industry blogs, trade publications
- Ask your network: People in the industry can provide competitive insights
- Study the company's LinkedIn: See who employees previously worked for (often competitors)
Pro Tips for Competitive Intelligence
- Go beyond direct competitors: Mention indirect competitors or substitute products
- Show strategic thinking: Talk about competitive moats or sustainable advantages
- Be balanced: Acknowledge competitor strengths while highlighting this company's advantages
- Reference recent moves: Mention a competitor's funding round, product launch, or acquisition
- Connect to your role: Explain how understanding competition will help you succeed in the position