International Competitive Intelligence: Understanding Local Competition

International Competitive Intelligence: Understanding Local Competition

You're crushing it against Salesforce and HubSpot in the US. You expand to Germany and lose deal after deal to a local CRM you've never heard of. Turns out, they've owned the German market for 15 years.

Global competitive intelligence focuses on global players. International competitive intelligence requires understanding local and regional competitors who dominate markets but have no presence in your home market.

Here's how to identify and analyze local competition when expanding internationally.

Why Local Competitors Matter More Than You Think

Local advantages global companies lack:

Market knowledge: 15+ years understanding local business practices, buyer behavior, pain points

Language and culture: Native understanding of how German/Japanese/Brazilian businesses operate

Established relationships: Deep customer relationships, local partnerships, industry connections

Brand recognition: Household name locally, unknown globally

Regulatory expertise: Navigate local compliance seamlessly

Local support: On-the-ground presence, local language support, timezone coverage

You're the unknown foreign vendor. They're the trusted local incumbent.

Types of Local Competitors

1. Regional leaders

Who they are: Dominant in one country or region, little/no global presence

Examples:

  • Zoho (India-based, strong in India/Southeast Asia)
  • SAP Business One (German SMB market)
  • Yandex (Russia search/cloud)
  • Baidu (China search/AI)
  • Mercado Libre (Latin America e-commerce)

Characteristics:

  • Deep local expertise
  • Optimized for regional needs
  • Strong local sales/support infrastructure
  • Competitive pricing for region
  • Local payment methods, integration ecosystem

2. National incumbents

Who they are: Dominant in single country, built for that market

Examples:

  • Naver (South Korea search/portal)
  • Rakuten (Japan e-commerce)
  • Flipkart (India e-commerce before Walmart acquisition)
  • Alipay/WeChat Pay (China payments)

Characteristics:

  • Market leader in home country
  • Product built for local needs
  • Government relationships
  • Cultural relevance
  • Difficult to displace

3. Regional startups

Who they are: Fast-growing startups in local market, flying under global radar

Examples:

  • Gojek (Indonesia ride-sharing/super-app)
  • Grab (Southeast Asia ride-sharing)
  • Nubank (Brazil fintech)

Characteristics:

  • Solving region-specific problems
  • Local funding and support
  • Rapid growth in region
  • May expand regionally but not globally

Finding Local Competitors

You won't find them in Gartner or Forrester. Need different research methods.

Method 1: Customer and prospect interviews

Ask: "What other solutions are you considering or using?" "Who do you see as the leader in this space in [country]?" "What local vendors did you evaluate?"

Prospects will tell you who they're comparing you to.

Method 2: Local search

Search in local language:

  • Google.de (Germany)
  • Yandex.ru (Russia)
  • Baidu.com (China)
  • Naver.com (South Korea)

Search terms: "[Product category] software" in local language

Example: "CRM software" → "CRM-Software" (German) → Find local vendors

Check ads and organic results (top 10).

Method 3: Local industry publications

Find:

  • Local tech news sites
  • Industry publications
  • Business magazines
  • Trade journals

Example Germany:

  • t3n.de (tech news)
  • Handelsblatt (business)
  • Industry-specific publications

See who's featured, advertising, winning awards.

Method 4: Trade shows and conferences

Attend local events:

  • See who's exhibiting
  • Who's sponsoring
  • Who's speaking
  • Who customers are talking about

Example:

  • CeBIT (Germany)
  • Web Summit (Portugal/Europe)
  • TechCrunch Disrupt (various)
  • Regional industry conferences

Method 5: LinkedIn and local networks

Search LinkedIn: "[Role] at [Company Type] in [Country]"

Example: "Sales Manager at CRM Software in Germany"

See where people work → Identify competitors

Local networks:

  • XING (Germany professional network)
  • VK (Russia)
  • WeChat (China)

Method 6: Local VC and startup databases

Resources:

  • Crunchbase (filter by region)
  • AngelList (regional startups)
  • Local VC portfolios
  • Regional accelerators

Find emerging competitors before they're known.

Method 7: Sales loss analysis

After losing deals, ask: "Who did you choose instead?"

Track in CRM:

  • Competitor name
  • Why they chose them
  • Pricing comparison
  • Feature comparison

Pattern emerges: Local vendor X wins 70% of German deals.

Analyzing Local Competitors

Once identified, analyze systematically:

1. Market position

Research:

  • Market share (if available)
  • Customer count
  • Revenue (if public)
  • Growth rate
  • Funding (for startups)

Sources:

  • Company websites (some publish stats)
  • News articles
  • Funding databases
  • Industry reports

2. Product positioning

Analyze:

  • How do they position?
  • What value props do they emphasize?
  • What buyer persona do they target?
  • What messaging resonates locally?

How:

  • Study their website
  • Read their blog and content
  • Watch their demos (if available)
  • Talk to their customers

3. Pricing strategy

Research:

  • Public pricing (if available)
  • Pricing model (subscription, perpetual, usage-based)
  • Regional pricing differences
  • Typical deal size

How:

  • Check pricing page
  • Ask prospects what they pay
  • Sales intelligence from lost deals

4. Product capabilities

Analyze:

  • Core features
  • Unique capabilities
  • Local integrations
  • Language support
  • Compliance/certifications

How:

  • Product tours
  • Free trials (if available)
  • Customer interviews
  • Sales demos (pose as prospect if ethical/legal)

5. Go-to-market approach

Understand:

  • Sales model (direct, partner, hybrid)
  • Marketing channels (events, content, paid)
  • Customer success approach
  • Support model

How:

  • LinkedIn research (see their team)
  • Event presence
  • Content output
  • Customer reviews

6. Strengths and weaknesses

From customer/prospect interviews:

Ask: "What do you like about [Local Competitor]?" "What frustrates you about them?" "Where do they excel?" "Where do they fall short?"

Identify opportunity gaps.

Competitive Battlecards for Local Markets

Create region-specific battlecards:

Germany Competitor: Local CRM X

Overview:

  • German SMB CRM, 15 years in market
  • 10,000+ customers in Germany
  • Strong in manufacturing, services

Positioning: "Established German CRM for Mittelstand"

Strengths:

  • Deep German market knowledge
  • DATEV integration (German accounting)
  • German-only support (seen as strength locally)
  • Established brand
  • Competitive pricing for German market

Weaknesses:

  • Limited international capabilities
  • Older UI/UX
  • No mobile app
  • Manual processes, limited automation
  • Small team, slow innovation

Our Advantages:

  • Modern, intuitive interface
  • Mobile-first
  • Advanced automation
  • International capabilities (if they need it)
  • Faster innovation

When We Win:

  • Companies with international operations
  • Teams wanting modern UX
  • Need for automation and integrations
  • Growth-focused companies

When They Win:

  • German-only operations
  • Traditional businesses preferring local vendor
  • Price-sensitive SMBs
  • Prefer German-only support

Objection Handling:

"They know the German market better": "True, they're established locally. We've learned from 1,000+ German customers and combine that local knowledge with global innovation and best practices from 50 countries. You get local expertise plus global capabilities."

"They integrate with DATEV": "We also integrate with DATEV, plus 100+ other tools. Our integration platform is more flexible for your tech stack."

"They're more affordable": "Let's look at total value. Our automation saves your team 10 hours/week. That ROI exceeds our price difference within 3 months."

Monitoring Local Competition

Set up ongoing monitoring:

Google Alerts (in local language):

  • Competitor company name
  • Competitor + "funding" or "partnership"
  • Competitor + industry terms

Social media monitoring:

  • Follow their accounts
  • Monitor mentions
  • Track engagement

Website monitoring:

  • Track their pricing changes (tools: Visualping)
  • New features announcements
  • Case studies and customers

Review sites:

  • G2 (filter by region)
  • Capterra (regional reviews)
  • Local review sites
  • TrustRadius

Track what customers say about them.

Sales win/loss tracking:

  • When you compete against them, track outcome
  • Why you won or lost
  • What mattered to buyer

Quarterly competitor review:

  • What changed?
  • New features, pricing, messaging?
  • Market share trends?
  • Strategic moves?

Adapting Strategy for Local Competition

Based on competitive intelligence, adapt:

Positioning:

If local competitor is:

  • Established, traditional → Position as modern, innovative
  • Affordable, basic → Position as comprehensive, enterprise-grade
  • Complex, enterprise → Position as simple, accessible
  • Local-only → Position as global capabilities with local expertise

Your competitive positioning changes based on WHO you're competing against.

Pricing:

If local competitor is significantly cheaper:

  • Consider regional pricing
  • Or emphasize value/ROI to justify premium
  • Or create entry tier for market

Features:

If local competitor has local integrations you lack:

  • Build them (if important)
  • Or partner for integrations
  • Or de-emphasize integration importance

Sales approach:

If local competitor uses partners:

  • Consider partner strategy
  • Or emphasize direct relationship value

If local competitor sells enterprise-only:

  • Target mid-market with self-serve
  • Different buyer segment

Case Study: Entering Germany

Product: Project management SaaS

Global competitors: Asana, Monday.com (known)

Local research reveals:

Local competitors found:

  • Competitor A: German, 12 years, strong in manufacturing
  • Competitor B: European startup, GDPR-focused
  • Competitor C: German open-source alternative

Competitive analysis:

Competitor A:

  • Strengths: Established, German support, industry templates
  • Weaknesses: Outdated UI, expensive, slow innovation

Competitor B:

  • Strengths: Modern, GDPR-native, European data centers
  • Weaknesses: Limited features, small team

Competitor C:

  • Strengths: Free/open-source, customizable
  • Weaknesses: Requires technical setup, no support

Adapted strategy:

Positioning: "Modern project management with enterprise security and German support"

Emphasizes:

  • Modern (vs. Competitor A)
  • Enterprise features (vs. Competitor B)
  • Managed/supported (vs. Competitor C)
  • GDPR compliance (table stakes)

Pricing:

  • Regional pricing (20% lower than US)
  • Competitive with local incumbents

Features:

  • German language
  • DATEV integration (accounting)
  • German data residency
  • German support team

Sales:

  • Hired German sales team
  • Partnered with German implementation partners
  • German case studies

Result: Competitive differentiation based on local competitive landscape.

Common Mistakes

Mistake 1: Ignoring local competition

Assuming global competitors are only threat.

Reality: Local players dominate many markets.

Mistake 2: Underestimating local players

Thinking: "They're not on Gartner, not a threat"

Reality: They own the local market you want to enter.

Mistake 3: Using global battlecards

Comparing to Salesforce when buyers compare to local vendor.

Better: Region-specific battlecards.

Mistake 4: No ongoing monitoring

One-time research, never updated.

Better: Quarterly competitive reviews, ongoing monitoring.

Mistake 5: No local customer intelligence

Not asking local customers who they considered.

Better: Win/loss analysis by region.

Getting Started

Month 1: Discovery

  • Customer/prospect interviews (who do you compete against?)
  • Local search research
  • Trade show and publication research
  • Identify top 3-5 local competitors

Month 2: Analysis

  • Deep dive on each competitor
  • Positioning, pricing, product
  • Strengths and weaknesses
  • Customer perspectives

Month 3: Strategy

  • Create regional battlecards
  • Adapt positioning and messaging
  • Identify competitive advantages
  • Sales enablement

Ongoing:

  • Monitor competitors quarterly
  • Update battlecards
  • Track win/loss by competitor
  • Refine strategy

International expansion without local competitive intelligence is flying blind. You'll lose to competitors you didn't know existed.

Research local competitors systematically, understand their advantages, and adapt your strategy accordingly.

Know your local competition better than they know you.