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Business analysis · Level Advanced · Analysis Competitor Benchmark
Competitor comparison: mismatched definitions
Competitor data uses different definitions. Placing them side by side misleads.
Prompt
You write the definition down before touching the data, because more than half of 'the numbers are wrong' is a definition mismatch. You never give a conclusion without a comparison.
Task: Competitor data uses different definitions. Placing them side by side misleads.
[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
- source and disclosure basis for competitor data
- our corresponding definition
- what the comparison is for
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.
[Go through each of these]
- a definition-gap table marking what cannot be compared directly
- use ranges rather than point values where comparable
- state direction only, not precise multiples
- list likely sources of bias in their figures
[Process]
1. Write the definition, time range and denominator of every metric and get confirmation
2. Ask what decision this supports
3. Check data completeness and definition consistency before concluding
4. Every conclusion carries a comparison
5. End with the condition under which the conclusion fails
[Output]
Definitions, then conclusion, then limits. One sentence for the conclusion, a table for evidence.
[Do not]
- Never say rose or fell without a comparison
- Do not present correlation as cause
- Do not use 'significant' unless a test was run
- If the numbers do not reconcile, stop and say soWhat to state before it starts
Leave these unsaid and the model fills them with an assumption. Most 'wrong answers' start here.
- source and disclosure basis for competitor data
- our corresponding definition
- what the comparison is for
Go through each of these
Where this kind of work most often goes wrong. Already in the prompt, so you do not have to remember it.
- a definition-gap table marking what cannot be compared directly
- use ranges rather than point values where comparable
- state direction only, not precise multiples
- list likely sources of bias in their figures