What Is a Competitive Analysis? Definition + Template (2022) (2022)

Table of Contents
Free: Competitive Analysis Template Get the competitive analysis template delivered right to your inbox. Thanks for subscribing. You’ll start receiving free tips and resources soon. In the meantime, start building your store with a free 14-day trial of Shopify. What is a competitive analysis? Competitive analysis example: what does one look like? Why competitor analysis matters for ecommerce Free: Business Plan Template Get the business plan template delivered right to your inbox. Thanks for subscribing. You’ll start receiving free tips and resources soon. In the meantime, start building your store with a free 14-day trial of Shopify. How to do a competitor analysis 1. Select 7–10 competitors 2. Create a spreadsheet 3. Determine competitor types 4. Identify your competitors’ positioning 5. Determine competitive advantage and offerings 6. Understand how your competitors market their products 7. Conduct a SWOT analysis Free: SWOT Analysis Template Get the SWOT analysis template delivered right to your inbox. Thanks for subscribing. You’ll start receiving free tips and resources soon. In the meantime, start building your store with a free 14-day trial of Shopify. Collect data with these competitor analysis tools SEO Analysis PPC/keyword performance Social media performance Email marketing Content marketing performance A competitive analysis template Free: Competitive Analysis Template Get the competitive analysis template delivered right to your inbox. Thanks for subscribing. You’ll start receiving free tips and resources soon. In the meantime, start building your store with a free 14-day trial of Shopify. Six pitfalls of competitor analysis in marketing 1. Competitive analysis is not a one-and-done exercise 2. Confirmation bias is real 3. Data without action is useless 4. Working harder instead of smarter 5. Starting without a direction 6. Not accounting for market timing Competitive analysis: your business edge Ready to create your first business? Start your free 14-day trial of Shopify—no credit card required. Competitive Analysis FAQ What is the meaning of competitive analysis? What is in a competitive analysis? How do you write a competitive analysis? Is SWOT a competitive analysis? FAQs Videos

There's nothing more frustrating in business than seemingly doing everything right, only to see your competition continue to grow, while your own company remains stagnant.

Fortunately, doing a competitor analysis can be incredibly helpful for understanding your strengths and weaknesses and help you find your edge.

This post outlines a method for conducting a competitive analysis that any business can use, whether you’re a successful store owner that’s re-evaluating your view of the current market or you’re just getting ready to launch your businessfor the very first time.

Below, we’ll show you the tools you need to perform an effective competitor analysis and help you identify what to make note of (e.g., social/search presence, pricing, etc.). We’ve even included a free competitor analysis template you can follow along with and fill out while conducting your own analysis.

Find your competitive edge 🎯

  • What is a competitive analysis?
  • Why competitor analysis matters for ecommerce
  • How to do a competitor analysis
  • Collect data with these competitor analysis tools
  • A competitive analysis template
  • Pitfalls of competitive analysis in marketing
  • Competitor analysis: your business edge
  • Competitive analysis FAQ

What Is a Competitive Analysis? Definition + Template (2022) (1)

Free: Competitive Analysis Template

By evaluating the strengths and weaknesses of your competition, you can begin to formulate how to give your company an advantage. Download our free competitive analysis template and gain an edge over the competition.

What Is a Competitive Analysis? Definition + Template (2022) (2)

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Thanks for subscribing. You’ll start receiving free tips and resources soon. In the meantime, start building your store with a free 14-day trial of Shopify.

What is a competitive analysis?

A competitive analysis, also referred to as a competitor analysis, is a comparison of competitors’ strategies used to evaluate the strengths and weaknesses of different marketing approaches within an industry.

It helps a business determine potential advantages and barriers within a market around a product or service and generally helps brands monitor how direct and indirect competitors are executing tactics like marketing, pricing, and distribution.

Competitive analysis example: what does one look like?

The competitive analysis can vary widely depending on what it is you’re trying to learn about your competitors. You might do a competitive analysis around a specific aspect—like a competitor’s website approach, for example—or you might do a high-level look at their marketing approach as a whole. Ultimately the goal is to help you understand your strengths and reach new potential customers.

There are a lot of different ways you can structure a competitive analysis, so let’s look at the different types of information that are frequently seen within this type of research.

If you’re doing a high-level competitive analysis, there are a few major elements you’ll want to be sure to include around around competitors’ market positioning, such as:

(Video) How to Conduct a Competitive Analysis for Your Business (Plus a Free Template)

  • Who their target customers are;
  • What their main differentiator/unique value add is for their business and products;
  • Key features/benefits they highlight in sales materials;
  • Price points for products across a variety of marketplaces ;
  • How they approach shipping;
  • Whether they’ve received any funding or venture capital.

These sections will help you get a zoomed out look at what separates your competitors from each other and how they’re working to differentiate themselves from competition within your niche.

If you’re wanting to look at more specific elements of your competitors’ approaches, you might consider adding sections like these to your competitor analysis:

  • Website features ( search tools, product images, design/layout, etc.)
  • Customer experience elements ( checkout workflows, customer support, mobile UX, etc.)
  • Copywriting tactics (product descriptions, calls to action, etc.)
  • Social media approach (channels used, frequency of posting, engagement, etc.)
  • Content marketing tactics (blog topics, content types, etc.)
  • Marketing tactics (types of promotions, frequency of discounts, etc.)
  • Email marketing approach (Newsletter, abandoned cart emails, promos, etc.)
  • Customer reviews (language used around products, recurring complaints, etc.)

Generally, competitive analysis can take on many shapes and forms depending on what a company wants to evaluate about its competitors—but this gives you a rough idea of what could be included within the different sections.

Read more: What Is Product Development? Learn The 7-Step Framework Helping Businesses Get to Market, Faster and Easier

Why competitor analysis matters for ecommerce

Maybe at this point you’re thinking, “OK, but why does competitor analysis matter for me as a business owner or marketer?”

The main reason this activity is important is because you can’t effectively compete without knowing your competitors—and you can’t differentiate yourself if you don’t know what actually makes you different.

If you’re starting an ecommerce business, an analysis of competitors helps you to:

  • Make more informed marketing decisions;
  • Identify industry trends;
  • Benchmark against competitors;
  • Solidify a unique value proposition ;
  • Determine pricing (upmarket, down, or mid);
  • Unearth new ways of speaking to customers, or even new customers to speak to;
  • Find a gap in the marketing and also ensure there’s a market in the gap.

This type of analysis is not just for first-time ecommerce retailers either. A competitor analysis can, and should, be a living document that’s constantly evolving as a company grows and matures over time.

Maintaining a resource like this is a powerful way to stay on top of how your brand stacks up against the competition right now—but it also can help provide clear direction on how you’ll continue to excel in the future.

Need an example for reference? Here’s one showing what a competitor analysis might look like:

What Is a Competitive Analysis? Definition + Template (2022) (3)

What Is a Competitive Analysis? Definition + Template (2022) (4)

Free: Business Plan Template

Business planning is often used to secure funding, but plenty of business owners find writing a plan valuable, even if they never work with an investor. That’s why we put together a free business plan template to help you get started.

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Get the business plan template delivered right to your inbox.

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We'll also send you updates on new educational guides and success stories from the Shopify newsletter. We hate SPAM and promise to keep your email address safe.

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(Video) How to Do Competitor Analysis 2022 — Learn Competitive Analysis for Your Business [ Step by Step ]

How to do a competitor analysis

Once you’re ready to dive into a competitive analysis of your own, follow the steps outlined here to keep your research structured and organized appropriately.

1. Select 7–10 competitors

To identify relevant competitors to include in your analysis, start with searches on Google, Amazon, and Alexa around your product and business idea. You want a mix of competitors that:

  • Sell similar types of products;
  • Have a similar business premise;
  • Market to similar and slightly different audience demographics;
  • Are both new to the marketplace and more experienced.

To put together a list of diverse competitors that will give you a good look at the competitive landscape that’s not too small and not too large, it’s a good idea to stick with a group of seven to 10 relevant competitors.

2. Create a spreadsheet

As you collect data on this group of competitors, keep it organized within a table or spreadsheet that can easily be shared and updated over time. Within this document, you’ll compare and contrast competitors based on different criteria such as:

  • Price range;
  • Product offerings;
  • Social media engagement;
  • Content used for lead generation;
  • First-time visitor offers;
  • Other traits that are worth comparing.

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3. Determine competitor types

Starting with your list of competitors, begin your spreadsheet by categorizing each one as a primary or secondary competitor. This will help you better determine how they’ll relate to your business.

  1. Direct competitors, or primary competitors, to your business that sell a similar product to a similar audience. Example: Nike and Adidas are primary competitors.
  2. Indirect competitors are secondary competitions that offer a high-end or low-end version of your product to a different audience. Example: Victoria’s Secret and Walmart are secondary competitors.
  3. Tertiary competitors are related brands that may market to the same audience but don’t sell the same products as you or directly compete with you in any way. They may be potential partners or future competitors if they choose to expand their business. Example: Gatorade and Under Armour.

What Is a Competitive Analysis? Definition + Template (2022) (7)

4. Identify your competitors’ positioning

Positioning is the most persuasive marketing tool for a business. Good positioning helps you connect with a target audience and keeps them around longer. It also determines your messaging, values, and overall business strategy.

This is exactly why understanding your competitors positioning is so important. You can learn how to separate yourself and build a favorable reputation in your customers’ eyes. Differentiation also helps increase brand awareness and justify your prices, which impacts your bottom line.

Analyze these key channels to determine positioning and messaging:

  • Social media;
  • Press releases;
  • Website copy;
  • Events;
  • Interviews;
  • Product copy.

When identifying your competitors’ positioning, ask yourself the following questions:

  • What story do they express to customers?
  • How do they position their products?
  • What’s their company description?
  • How do they describe their unique value proposition?

Understand how competitors interact with their followers, customers, employees, partners, and shareholders. If you can pinpoint their communication framework, you’ll be able to position yourself differently and set yourself apart from competitors.

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5. Determine competitive advantage and offerings

Once you understand your competitors’ messaging, take a look at their competitive advantage and product or service offer. The vast majority of succesful companies have a clear "secret sauce" compared to their competition.

For example, a fashion retailer’s competitive advantage may be high-quality, reasonably priced products and expedited shipping services. An online educator may have 20 years of experience teaching and working in their specific industry. Unique selling propositions like these are not easy to replicate and can drive brand name recognition for a business.

Take time to look at your competitors’ goods and services and compare them to your own. Read online reviews of your target audience to see why customers choose their company. It could be that they offer similar products at a lower price or have a focus on sustainability. Either way, you’ll want to learn their advantage and figure out how you can offer something better.

What Is a Competitive Analysis? Definition + Template (2022) (9)

6. Understand how your competitors market their products

Marketing is the secret to the most successful ecommerce stores. A good offering is the cost of entry, but marketing takes you to the top. Unfortunately, most businesses fail to undertake a review of their competitors’ marketing. They assume that everyone is on Instagram, running Facebook ads, and optimizing their site for search.

And a lot of them are. But understanding how your competitors market their products takes a different perspective. You want to find out what offers they are promoting, how they are building and managing their contact lists, and how they are distributing content online.

Along with the research you’re doing through software and tools, it’s a good idea to get hands-on with your competitive research, too. Assume the role of a potential customer and check out what your competitors are doing in the marketing department.

You can do this by:

  • Signing up for their newsletters;
  • Subscribing to their blogs;
  • Following them on social media;
  • Abandoning a product in the shopping cart;
  • Purchasing a product.

As you execute these activities, be sure to document your findings with notes on each tactic you see. By studying their approaches to cart abandonment and looking at how they deliver support via social media (and beyond), you can spot interesting approaches your competition is using to attract more customers and to drive sales. The insights you gather during this stage can be incredibly helpful for your sales team specifically.

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7. Conduct a SWOT analysis

Consider conducting a SWOT analysis to accompany the data you collect. It’s a competitive analysis framework that lists your company’s strengths, weaknesses, opportunities, and threats and is helpful in shaping your overall marketing strategy as well. SWOT leans into your competitors’ strengths and compares them to your business to define areas of improvement.

Strengths and weaknesses focus on the present. They are elements you control and can change over time, including:

  • Reputation;
  • Product offering;
  • Partnerships;
  • Intellectual property;
  • Number of employees;
  • Market share;
  • Assets.

Opportunities and threats are outside your control. You can plan for changes but can’t influence these elements. They include:

  • Competitors’ products;
  • The economy;
  • Consumer trends;
  • Regulation;
  • Market size;
  • Market demand.

Aim to run a SWOT analysis annually. It helps inform your break-even analysis and keeps tabs on the competitive landscape. You can anticipate problems and make continuous improvements to your business. Should you seek funding, you’ll want to include an updated SWOT analysis in your proposed business plan.

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Free: SWOT Analysis Template

Get your free SWOT Analysis Template. Use this free PDF to future-proof your business by identifying your strengths, weaknesses, opportunities, and threats.

(Video) Marketing Competitor Analysis - full digital marketing analysis for 2022

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Collect data with these competitor analysis tools

Once you know which direct competitors you’ll be studying, it’s time to start diving into research and data collection for your competitive analysis. The good news is that today there are many different tools and software available that can make data collection for your competitive analysis simpler, more efficient, and more accurate.

Let’s look at a few different resources that can help you gather key insights into different aspects of your competition’s marketing approach from their product or service positioning to their content marketing and social media efforts as well.

SEO Analysis

  • Ahrefs: checks any URL’s top-performing organic keywords and gets estimated traffic reports around those keywords.
  • Alexa: helps define audience demographics and search rankings for your site as well as your competitors websites.
  • SE Ranking: shows competitors’ paid and organic search performance, strategy, and keywords.

PPC/keyword performance

  • SimilarWeb: gives insights into estimated monthly visits and key traffics sources for a website. Helpful for determining a rough view of your competitor's marketshare.
  • SpyFu: helps you research and download the most profitable keywords your competition is using in their PPC campaigns.
  • iSpionage: shows how many keywords competitors are using on Google Ads and which ones they’re targeting, as well as their projected monthly budget.
  • SEMrush: helps identify your competition’s keywords, does a site audit, and analyzes backlinks.
  • WhatRunsWhere: provides data around competitors’ advertising approaches across the internet.

Social media performance

  • RivalIQ: shows how often competitors post across social channels, their average engagement rates, and their most successful content.
  • Followerwonk: provides Twitter insights around follower demographics, key influencers, and performance metrics.
  • Sprout Social: benchmarks around competitors’ social performance across social channels, influencer identification, and reporting.

Email marketing

  • Owletter: analyses changes in sending frequency and spots trends in competitors’ emails.
  • MailCharts: aggregates emails and provides insight into frequency of email sends, subject line tactics, and more.

Content marketing performance

  • BuzzSumo: helps you see the top-performing content for topics and for specific competitors, as well as total social shares.
  • Monitor Backlinks: helps monitor backlinks each time someone references your content, plus that of your competitors.
  • Feedly: aggregates content as it’s published so you can study topics covered by competitors in one place.

Using these resources, start gathering data and dropping it into your competitive analysis spreadsheet so your findings are all stored in a single, organized space.

A competitive analysis template

If you’re not still quite sure how to start laying out your template for your analysis, here’s an example and template you can work from to get the ball rolling.

Let’s say you sell makeup brushes. You’ll see how you could compare competitors’ approaches (and identify what you could do to stand out):

Competitor 1 (Primary)Competitor 2 (Primary)Competitor 3 (Primary)Competitor 4 (Secondary)Competitor 5 (Secondary)
Company NameName 1Name 2Name 3Name 4Name 5
Price Point$15-20$20-25$50-80$10-15$100+
Target AudienceWomen ages 18-25Women ages 18-30Women ages 18-30Girls ages 13-18Women ages 40-65
Market Share10%20%40%10%10%
Key competitive advantageLarge Instagram followingFree shipping year-roundAggressive Facebook ad spendingPriceLuxury angle
Marketing strategyNewsletter and Instagram adsNewsletter, some social media, retargetingFacebook adsCheapest on AmazonMagazines, TV, commercials, some social
# of products751008552540

You can add as many sections as you want to your template, but remember to keep your group of primary and secondary competitors limited to seven to 10 so that your frame of reference is highly relevant.

Want a simple competitive analysis template to speed up the process?

What Is a Competitive Analysis? Definition + Template (2022) (14)

Free: Competitive Analysis Template

By evaluating the strengths and weaknesses of your competition, you can begin to formulate how to give your company an advantage. Download our free competitive analysis template and gain an edge over the competition.

What Is a Competitive Analysis? Definition + Template (2022) (15)

(Video) Competitor analysis ; How to do a Competitor Analysis + Templates and Examples (2022-Upd)- class -11

Get the competitive analysis template delivered right to your inbox.

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Six pitfalls of competitor analysis in marketing

Now that you know how to put together a competitive assessment, let’s go over some of the main pitfalls to be aware of that can throw off the insights you’ve gathered.

1. Competitive analysis is not a one-and-done exercise

Never revisiting your original insights (or never updating them, for that matter) can lead to faulty data and poor decisions. Businesses are constantly evolving, so it’s important to remember that keeping an eye on your competitors is an ongoing process—not something you do once and then never again. Ultimately, you have to be at the top of your game consistently if you want to increase your market share.

2. Confirmation bias is real

As humans, we have a tendency to jump to conclusions around our assumptions. This is called confirmation bias. As you work through your analysis, it’s important to be aware of your initial assumptions and to test them thoroughly rather than leaning on what you “think” is true about your competitors. Let the data inform your decisions rather than letting assumptions take the lead.

3. Data without action is useless

If you’re putting in the work to do a competitor analysis, be sure that you’re acting on the findings rather than letting them gather virtual dust on your computer, buried in an obscure file folder. Make a strategic plan around your findings and execute on the unique angles and tactics that you’ve discovered during this process.

4. Working harder instead of smarter

With so many great resources available that simplify the data collection process around competitive analysis today, putting together a top-notch, highly accurate comparison is easier than ever before. Don’t reinvent the wheel and do things the hard way: make the investment into tools that speed up the process and provide the important insights you need to make informed, data-backed decisions about your business.

5. Starting without a direction

If you’re directionless while putting together your competitive analysis and have no clear end objective, the work will be much, much harder. Before diving into research, define your goal and what you hope to learn about your competition. What do you want to accomplish? What do you want to build? It is your own business after all!

6. Not accounting for market timing

When looking at competitor data, be sure to study how companies have grown and progressed over time rather than examining their approaches at a single fixed point.

Sometimes information about how your competitors have evolved their tactics can be even more useful than knowing what they did in the early days (or what they’re doing right now). Understanding past, current, and future industry trends will help you make better decisions.

Competitive analysis: your business edge

Competitive intelligence is key to starting a business. By doing market competition analysis on an ongoing basis, you can always be on top of your competition. You’ll be able to break into new markets, launch new products, and keep tabs on your competitors’ customers—giving you a cutting edge approach to small business that keeps your business or startup agile.

Ready to create your first business? Start your free 14-day trial of Shopify—no credit card required.

Competitive Analysis FAQ

What is the meaning of competitive analysis?

A competitive analysis is the analysis of your competitors and how your business compares. By evaluating the strengths and weaknesses of your competition, you can begin to formulate how to give your company an advantage.

What is in a competitive analysis?

  • Who a competitor’s target customers are;
  • What market share they currently own;
  • What their main competitive advantages are;
  • Key product features/benefits;
  • Price points for products, even across different marketplaces;
  • How they do shipping;
  • If they’ve received any funding or venture capital.

How do you write a competitive analysis?

  1. Choose seven to 10 competitors.
  2. Create a spreadsheet to track your data.
  3. Determine competitor types.
  4. Identifying positioning.
  5. Determine competitive advantage and offering.
  6. Understand how your competition markets themselves.
  7. Conduct a SWOT analysis.

Is SWOT a competitive analysis?

SWOT is a competitive analysis framework that helps gain insight into a current business situation. SWOT represents Strengths, Weaknesses, Opportunities, and Threats

(Video) How to Conduct a Competitive Analysis

FAQs

How do you define competitive analysis? ›

A competitor analysis, also referred to as a competitive analysis, is the process of identifying competitors in your industry and researching their different marketing strategies. You can use this information as a point of comparison to identify your company's strengths and weaknesses relative to each competitor.

What is competitor analysis template? ›

The Competitive Analysis Template is a model for understanding the competitive landscape. Competitor research is crucial to the success of your business and this framework analyzes the market competition and allows you to quickly adapt to changes to stay ahead of the trends.

How do you write a competitive analysis template? ›

How to use the competitive analysis template
  1. Complete your competitor profile. ...
  2. Discover your competitive advantage. ...
  3. Compare your target markets and market share. ...
  4. Compare your product offerings. ...
  5. Dig into your marketing strategies. ...
  6. Conduct a SWOT analysis.

What should a competitive analysis include? ›

A competitive analysis should examine your competitors' features, market share, pricing, marketing, differentiators, strengths, weaknesses, geography, culture and customer reviews. This article is for new and established small business owners who want to analyze their competition to improve their products or services.

Why is a competitive analysis important? ›

The purpose of a competitor analysis is to understand your competitors' strengths and weaknesses in comparison to your own and to find a gap in the market. A competitor analysis is important because: It will help you recognise how you can enhance your own business strategy.

What are the types of competitive analysis? ›

The seven most useful competitive analysis frameworks
  • SWOT Analysis. Talk about an old faithful. ...
  • Porter's Five Forces. ...
  • Strategic group analysis. ...
  • Growth-share matrix. ...
  • Perceptual mapping. ...
  • Business model canvas. ...
  • Customer journey map.
16 Nov 2021

How do I create a competitor analysis in Word? ›

How to Draft a Competitive Market Analysis Report in 5 Steps
  1. Step 1: Give Your Company Introduction. ...
  2. Step 2: Provide Your Competitor's Profile. ...
  3. Step 3: Compare the Products and Services. ...
  4. Step 4: Conduct SWOT Analysis. ...
  5. Step 5: Specify the Strategies.

What is a competition analysis in a business plan? ›

A competitive analysis is a type of market research that identifies your competitors, their strengths and weaknesses, the strategies they are using to compete with you, and what makes your business unique.

Is SWOT a competitive analysis? ›

What Is SWOT Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.

What is competitive analysis in strategic management? ›

Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.

How do you write a competitor in a business plan example? ›

How to write your competitive analysis
  • Define your business use. For the competition section of your business plan, first, settle on which of these two business uses applies to your situation: ...
  • Establish your competitive position. ...
  • Establish regular competitive review channels.

What are the four 4 stages involved in monitoring competitors? ›

These are the four key steps to learn from your competitors and take a few shortcuts.
...
Let's get down to business.
  • Figure out which competitors you'll analyze. ...
  • Choose what you want to monitor. ...
  • Choose the tools you'll use. ...
  • Pull the trigger.
6 Oct 2016

What is a competitive analysis grid? ›

Definition (1): A competitive analysis grid is a tool for organizing the information a firm collects about its competitors to see how it stacks up against its competitors provides ideas for markets to pursue, and, perhaps most importantly, identifies its primary sources of competitive advantage.

What should be considered important objective in a competitive environment? ›

Objectives of competition

Three important points to keep in mind when thinking about the objectives of competition are: underlying variable of competition (price, quantity, quality etc.); aimed level of achievement; and competitive process that is at least partly determined by the strategic objectives of agents.

What is the first thing a company does when analyzing competitors? ›

What is the first thing a company does when analyzing​ competitors? A. Assess​ competitor's strengths and weaknesses.

How often should you perform a competitor analysis? ›

Performing a current competitive analysis is highly recommended on a quarterly basis — and on a monthly basis for ideal results.

What factors should you consider in identifying your competitors? ›

How to Identify Direct Competitors
  • Market Research. Take a look at the market for your product and evaluate which other companies are selling a product that would compete with yours. ...
  • Solicit Customer Feedback. ...
  • Check Online Communities on Social Media or Community Forums.
22 Feb 2018

What is competitive structure? ›

A structure which describes the current status of a product in a market is called competitive structure. This structure indicated the following: • Number of competitors. • Levels of demand and supply in the market. • Ease of entry into the market.

Which of the following tool we use for competitor analysis? ›

SimilarWeb

This competitive analysis tool will help you benchmark against your competition, monitor your industry, and reveal your competitors' analytics and online strategy.

How I will measure against the competition? ›

How to do a Competitive Analysis
  • Determine who your competitors are.
  • Determine what products your competitors offer.
  • Research your competitors' sales tactics and results.
  • Take a look at your competitors' pricing, as well as any perks they offer.
  • Ensure you're meeting competitive shipping costs.
24 Nov 2021

How do you write a competitor matrix? ›

How to create a competitive matrix
  1. List the features of your brand. In the left column of your competitive matrix, you can list factors you use to target customers, such as: ...
  2. List the competitors of your brand. ...
  3. Rank your brand against your competitors.

What is a competition Matrix? ›

A competitive matrix is a visual resource that enables you and your colleagues to better understand your company's position within the market—that is, to better understand how your company stacks up against the competition from a specific perspective.

How do you write a competitive advantage in a business plan? ›

These three steps will help you realize what sets you apart from the rest:
  1. Identify your competitors. Start by making a list of your direct and indirect competitors. ...
  2. Find their strengths and weaknesses. Identify what your competitors are doing right. ...
  3. Figure out your “special ingredient”
23 Oct 2017

What are the 5 components of a business plan? ›

Main Components of a Business Plan
  • Executive summary. This is your five-minute elevator pitch. ...
  • Business description and structure. This is where you explain why you're in business and what you're selling. ...
  • Market research and strategies. ...
  • Management and personnel. ...
  • Financial documents.

What is comparative business analysis? ›

Comparative analysis is the process of comparing items to one another and distinguishing their similarities and differences. When a business wants to analyze an idea, problem, theory or question, conducting a comparative analysis allows it to better understand the issue and form strategies in response.

What is a competitive analysis in a business plan? ›

Competitive analysis helps you learn from businesses competing for your potential customers. This is key to defining a competitive edge that creates sustainable revenue. Your competitive analysis should identify your competition by product line or service and market segment.

Why is a competitive analysis important to an entrepreneur? ›

A competitive analysis should provide the entrepreneur with information about how competitors market their business and ways to penetrate the market by entry through product or service gaps in areas that your competitors do not serve or do not serve well.

What is a competitive strength analysis? ›

What it is: By definition a competitive strength assessment is an assessment of the competition in a certain market to help managers account for the presence of competitors when making business decisions.

Is SWOT a competitive analysis? ›

What Is SWOT Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.

How do you do a simple competitive analysis? ›

How to Do a Competitive Analysis - 8 Simple Steps
  1. Step 1 - Choose your Top Competitors. ...
  2. Step 2 - Describe Each Competitor. ...
  3. Step 3 - Describe Their Competitive Offering. ...
  4. Step 4 - Summarize Their Online Presence. ...
  5. Step 5 - List Their Strengths. ...
  6. Step 6 - List Their Weaknesses. ...
  7. Step 7 - Identify Your Opportunities.
5 Aug 2017

How do you conduct a competitive analysis research? ›

Here are six steps to getting started on competitive research:
  1. Identify main competitors. ...
  2. Analyze competitors' online presence. ...
  3. Gather information. ...
  4. Track your findings. ...
  5. Check online reviews. ...
  6. Identify areas for improvement. ...
  7. Tools for competitive research.
25 Feb 2019

How do you write a competitive advantage in a business plan? ›

These three steps will help you realize what sets you apart from the rest:
  1. Identify your competitors. Start by making a list of your direct and indirect competitors. ...
  2. Find their strengths and weaknesses. Identify what your competitors are doing right. ...
  3. Figure out your “special ingredient”
23 Oct 2017

What is the first thing a company does when analyzing competitors? ›

What is the first thing a company does when analyzing​ competitors? A. Assess​ competitor's strengths and weaknesses.

What factors should you consider in identifying your competitors? ›

How to Identify Direct Competitors
  • Market Research. Take a look at the market for your product and evaluate which other companies are selling a product that would compete with yours. ...
  • Solicit Customer Feedback. ...
  • Check Online Communities on Social Media or Community Forums.
22 Feb 2018

Why do we need to start the competitive analysis with the user in mind? ›

It helps you gauge how to curb competitors and refine your strategy. Conducting a competitive analysis is important because you'll build: An understanding of how your existing and potential customers rate the competition. A mechanism to develop effective competitive strategies in your target market.

What is a competitive advantage example? ›

For example, if a company advertises a product for a price that's lower than a similar product from a competitor, that company is likely to have a competitive advantage. The same is true if the advertised product costs more, but offers unique features that customers are willing to pay for.

How long does it take to do a competitive analysis? ›

But a good general rule is six to seven weeks to analyze one competitor, and seven to eight weeks to analyze multiple companies.

What is key success factors in strategic management? ›

Key success factors (also known as competitive emphasis or strategic posture) state the important elements required for a company to compete in its target markets. In effect, it articulates what the company must do, and do well, to achieve the goals outlined in its strategic plan.

What are competitive threats? ›

A competitive threat is competition that hasn't occurred but has potential to occur. In other words, it is a risk of competition. As with any risk, a competitive threat has a probability and impact and may be treated.

What are 4 examples of opportunities? ›

What are some examples of opportunities?
  • Get help on projects.
  • Propose working groups.
  • Get testers for new ideas or products.
  • Create a team to work on an idea you have.
  • Share your expertise or best practices in a particular field.

How do you conduct a competitor SWOT analysis? ›

Below we provide a step-by-step guide as to how to conduct a competitor SWOT analysis, first up, you need to identify your competitors…
...
Ask yourself:
  1. What does my company do well?
  2. What do my customers love about my products?
  3. What is my USP?
  4. What are my key resources? What do I have and utilize to its best advantage?

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