In a competitive analysis, what would be a sign of a significant threat?

A launch of a similar product is indeed a significant threat in competitive analysis because it directly targets the same customer base and solves similar problems. This means that the competing company is not just innovating but actively encroaching on market share, potentially diminishing your own sales. When a competitor introduces a product that closely resembles yours, it can create confusion among customers and encourage them to switch brands, especially if the new product offers a better value proposition or is positioned more effectively.

While an increase in product innovation and expansion of product features could indicate a healthy competitive landscape, they are more indicative of a focus on differentiation rather than a direct threat. Similarly, a growing industry market share can signal a shift, but it does not pinpoint a direct competitive challenge as succinctly as the launch of a similar product does. The key element here is that a similar product in the market is an immediate concern that requires a strategic response to protect your brand's position and sales.