You see some competitors mimicking your brand attributes, matching or undercutting your price, or even disrupting the core premise of your product or service with something entirely new.  When you look at customer trend data you’re starting to see a shift in tastes that may reflect a permanent change in demand.

Ask yourself:

Is your value proposition really under threat?  What do quality and customer satisfaction data tell you about your greatest opportunities for strength and areas of weakness? What data support this?  Is there a trend?

How quickly is your value proposition decaying?  Do you have time for organic reinvention, or do you need to grow inorganically by acquiring a competitor’s product?

What’s causing competitors to gain traction?  If you don’t know, find out.  It could be a service gap (fixable), a fulfillment gap (usually fixable), an inherent product weakness (less flexible), or waning relevance (seldom fixable for long.)

If customer tastes are changing can you use customer data to chart new paths to reinvention?

Would your core value proposition be fresh in any adjacent markets?  Could pursuing these markets provide a great enough return to buy time in filling your core market gap?

Can you afford (literally) to compete on the basis of something other than price?  Could you use flanking products to bolster the core product associated with the weakening value proposition?