A competitive analysis is the process of researching, evaluating, and benchmarking your business against key competitors in your market. It helps you understand where you stand, uncover opportunities, and craft strategies to outperform others.
At its core, a competitive analysis reveals:
- Who your main competitors are
- What products/services they offer
- How they position themselves in the market
- Their pricing, strengths, weaknesses, and marketing tactics
- Where your business has a competitive edge (or disadvantage)
Why It Matters
Conducting a competitive analysis allows you to:
- Identify market gaps and underserved audiences
- Improve your product offering or messaging
- Adjust pricing strategies
- Learn from your competitors’ strengths and mistakes
- Track how new players are entering your industry
Steps to Perform a Competitive Analysis
Step 1: Identify Your Top Competitors
Start by listing 3–5 primary competitors. These can be direct competitors (selling similar products to the same audience) or indirect competitors (offering alternative solutions to the same problem).
Step 2: Gather Information
Research each competitor by exploring their:
- Website layout and messaging
- Product/service features
- Pricing and packaging
- Customer testimonials and online reviews
- Blog content and SEO rankings
- Advertising channels and social media presence
Use tools like SEMrush or SpyFu to pull keyword rankings and ad data.
Step 3: Create a Comparison Chart
Map each competitor against your business using criteria like:
- Product/Service Range
- Price
- Customer Reviews
- Unique Features
- Website Quality
- Social Proof/Influencers
- Marketing Channels
This makes it easier to identify who’s strongest in which areas.
Step 4: Analyze Positioning and Messaging
Study how each brand speaks to its audience:
- Are they premium or value-oriented?
- Are they fun and casual or professional and authoritative?
- What unique value propositions are they pushing?
This step helps refine your own brand story.
Step 5: Evaluate Customer Sentiment
Check platforms like G2, Trustpilot, Yelp, or Google Reviews. Look for trends in:
- Common complaints or frustrations
- Features customers rave about
- Customer service responsiveness
Step 6: Spot Opportunities
What gaps can your business fill? Look for:
- Product features your competitors don’t offer
- Underserved customer segments
- Areas where you could provide better support, speed, or value
Detailed Example: Competitive Analysis in Action
Business Type: Meal Delivery Service (Portland, Oregon)
Step 1: Competitor List
- Competitor A: National brand with certified-organic meals, excellent SEO presence, high pricing
- Competitor B: Local company with flexible plans and budget pricing, but limited vegan offerings
- Competitor C: App-based delivery startup with rapid delivery and wide selection, but poor user retention and mixed reviews
Step 2: Gather Info
- Competitor A’s website ranks for “organic meal delivery” and has a clean, health-focused brand
- Competitor B is popular in local Facebook groups, but doesn’t advertise much beyond that
- Competitor C has a slick mobile app and runs heavy Google Ads, but reviews complain about missing meals
Step 3: Create a Chart
Feature | Your Company | Competitor A | Competitor B | Competitor C |
Vegan Meals | ✅ | ✅ | ❌ | ✅ |
Delivery Speed | ✅ | ❌ | ✅ | ✅ |
Pricing | $$ | $$$ | $ | $$ |
Customization | ✅ | ❌ | ❌ | ✅ |
Customer Rating | 4.7 | 4.5 | 4.2 | 3.6 |
Step 4: Analyze Positioning
- Competitor A leads with organic credibility
- Competitor B positions on affordability and local support
- Competitor C leans on convenience and speed
- Your opportunity: personalize meal plans and offer reliable vegan delivery
Step 5: Sentiment Review
- Customers of A complain about lack of flexibility
- B receives praise for customer service but lacks variety
- C has fast delivery but poor reliability
Step 6: Spot Opportunities
- Personalization (none of the competitors offer fully customized plans)
- Reliability and customer satisfaction (improve retention)
- Vegan options (clear local gap)
Your Strategy:
- Highlight customizable vegan meals with a satisfaction guarantee
- Launch a retargeting campaign for Portland area residents searching for plant-based delivery
- Partner with local fitness influencers to showcase value
Tools to Help with Competitive Analysis
- SEMrush / Ahrefs: Analyze keyword rankings, backlinks, and SEO performance
- SpyFu: View competitor PPC campaigns and keyword strategy
- SimilarWeb / BuiltWith: Understand web traffic and tech stacks
- G2 / Trustpilot / Yelp: Assess customer feedback and sentiment
Conclusion
A strong competitive analysis is more than a snapshot—it’s a living strategy document. It should be revisited quarterly as your market evolves. The insights you gather not only help with positioning and marketing but also drive smarter product decisions, pricing, and customer experience design.
