Whenever I have analyzed new companies or new markets, accurately measuring and predicting competition proves incredibly challenging. Who already dominates the market? How will existing companies respond to new products/features?

In early-stage venture investing, understanding existing competitors is truly an art. For example, I have invested in certain early-stage startups that hope to directly compete with Stripe. Stripe is definitely the 10,000 lb. gorilla/unicorn/etc. in the room. It is extremely difficult to analyze how a startup will take on existing competitors - especially in new and emerging markets.

Building off the fintech example, Square's Cash App competition with Paypal's existing tool, Venmo, would be challenging to initially predict and interpret. In my opinion, the Cash App is currently eating Venmo's lunch. But how would an investor analyze Square as a competitor to Paypal before the competition actually "occurs"?

I wanted to open up my basic question to members of the community - does anyone have a truly analytical, methodical approach to interpreting competition? As in, how does one pick one stock over 2-3 existing competitors? Zoom is a great example of a company in an incredibly competitive market that has emerged as a clear winner (at least for now). Several years prior, however, Zoom's competitors seemed incredibly daunting (Microsoft, Google, etc.).

How do investors in this community approach competition? I have a few general factors below on how to think of existing and future competition, but I would love to hear from the community.

Anything that I am missing? Thanks in advance!