What is Competitive Analysis?
Competitive analysis compares alternatives customers could choose and the ways those alternatives position themselves. This tool uses the competitors, criteria, and market details you enter; it does not automatically discover or verify competitor information.
When to use it
Use it when assessing your market position and looking for meaningful gaps across competitor offerings.
How the methodology works
Enter competitors and criteria, then compare the market information and ratings you provide. The tool does not automatically discover or verify competitors.
- Define the customer, market, and decision. Enter direct competitors and substitutes that solve the same job.
- Compare a short list of relevant factors using current, traceable evidence, and mark unknowns rather than filling them with guesses. The tool does not research competitors for you.
- Look for a specific customer need that is poorly served, then test whether your organization can address it credibly.
Example: Comparing payroll options for a small business
Illustrative situation: A business is considering payroll providers. Relevant factors could include supported locations, integrations, setup effort, service model, and published pricing.
How to apply it: A comparison table can show which provider meets each requirement, where information is missing, and which trade-off matters most to the business instead of declaring a universal winner.
Example limits: This scenario is illustrative, not evidence about a real business. Use evidence relevant to your decision for your own facts, ratings, probabilities, or financial estimates.
How to read the result
Look for gaps to differentiate, monitor competitor pricing and positioning, learn from strengths and weaknesses, and use the findings to refine your value proposition.
Questions about Competitive Analysis
Should I include indirect competitors?
Include substitutes when customers use them to solve the same problem, even if they are not a direct product match.
What if competitor information is unavailable?
Mark it as unknown and seek a reliable source. An empty or qualified field is more useful than presenting an unverified assumption as fact.
Does the tool find competitors automatically?
No. Add the competitors and information you want to compare, then verify factual claims with current, traceable sources.
Next step
Choose the customer and decision first, then compare only the alternatives and factors that could change your position.
Need a printable resource or a step-by-step method? Porter’s Five Forces guide. Examine industry-wide competitive pressures separately from competitor comparisons.