You're advising a company that has built a strong position in a growing software market, and leadership has just learned that a new competitor is entering. The entrant appears credible, but there is limited information on how strong its product, pricing, distribution, and long-term staying power will be. Your job is to assess whether this is a serious threat, a niche player, or a catalyst that changes how the company should compete.
How would you evaluate a new competitor entering the market?