What Is Competitive Analysis?
Competitive analysis is the practice of researching and documenting how your competitors operate. This includes their product choices, marketing tactics, and sales approaches. The goal is to use these insights to strengthen your own business strategy.
Creating a competitive analysis report allows you to:
Learn from what others have tried. Competitors have already spent time and resources testing different approaches. Reviewing their wins and mistakes helps you move forward faster.
Spot market gaps. You can identify areas where competitors are missing features, ignoring certain customer groups, or leaving needs unfulfilled. These gaps could become opportunities for your business.
Sharpen your brand positioning. By understanding how others present their products, you can refine how you position your own offering so it resonates better with your audience.
This process is helpful whether you’re building a new brand or improving an existing one.
Competitive analysis is also known as competition analysis or competitive market analysis.
How to Do a Competitive Analysis
Here’s how to run a competitive analysis step by step:
1. Copy the Competitive Analysis Template
DOC Link : SEO Competitor Analysis Template
Source SEMrush
Start by making a copy of the free competitive analysis template.
This Google Doc acts as the structure for your report.
2. Identify Competitors
To get useful insights, you need to analyze the right competitors.
Begin with direct competitors—businesses offering similar products or services to the same type of customers. They’re usually the easiest to compare yourself with.
You can find direct competitors by:
- Searching your product or service category on Google
- Checking industry directories or review sites
- Asking your sales team which alternatives prospects consider
- Surveying customers who switched away
- Adding domains into the Market Overview dashboard
- Checking the “Competitors” report in the Organic Research tool
Once you find a direct competitor, add their name and website to your report. Tools like the Traffic Overview dashboard can also show estimated traffic numbers.
Focus on three competitors to start so the process stays manageable. You can always include more later, including indirect competitors that solve the same problem differently.
3. Analyze Competitors’ Products or Services
Studying competitors’ offerings helps you spot market gaps, find chances to differentiate, and position your own product better.
Start with their homepage to understand their value proposition:
- What problem do they solve?
- How do they solve it?
- Who is their target customer?
Then review their product or service pages to learn about:
Features and capabilities:
Identify core functions, any standout features, and how they address customer needs.
Pricing:
Check subscription tiers if they’re in software. For physical products or services, review pricing across packages to see if they aim for premium, mid-range, or budget segments.
Save all insights in your report.
4. Uncover Marketing Channels and Content Formats
Understanding which channels drive traffic to competitors can help shape your own marketing choices
Use tools like the Top Pages and Traffic Overview dashboards to see where their visitors come from. For example, a high percentage of referral traffic may suggest strong partnerships or media features.
Source : SEMrush
Next, check their social media activity:
- Which platforms are they active on?
- What type of content are they posting?
- How well does that content perform?
Then look at their other content formats:
- Do they run a blog?
- Do they send newsletters?
- Do they host webinars or courses?
Analyze what topics they cover and how often they publish.
Finally, review their AI-driven traffic using the AI Traffic dashboard. You can learn:
- Which AI assistants send traffic to them
- How much traffic each assistant contributes
- Desktop vs mobile breakdown
- Trends in AI referral traffic over time
Source : SEMrush
Use this data to understand how competitors benefit from AI-generated answers and where new opportunities may exist.
5. Research Sales Processes
Study how competitors guide prospects through their sales funnel.
A typical sales process includes:
Presenting the offering:
Look at how they communicate value and showcase their solution. Smaller purchases may not have a big sales team, while higher-ticket offers usually do.
Following up:
See how they stay connected with leads—email reminders, phone calls, or trial extensions.
Closing:
Review what they use to convert leads, such as discounts, guarantees, or bundles.
Retention:
Check how they encourage repeat purchases or subscriptions with loyalty programs or exclusive content.
To get the best insights, go through their customer journey yourself. Sign up for newsletters, attend webinars, or request demos. Notice their communication style, timing, and what tools they use to build trust.
6. Study Feedback
Customer feedback reveals how competitors are perceived and where they excel or fall short.
Use these sources:
Review sites:
Look for patterns in what customers praise or complain about.
Social media:
Monitor conversations on platforms like X, Reddit, and LinkedIn using tools like Mention or Brand Monitoring.
News coverage:
Check how reliable media outlets talk about your competitors and note both positive and negative coverage.
Add your findings to your report.
7. Evaluate Competitors’ Strengths and Weaknesses
After collecting all your data, identify what your competitors do well and where they struggle.
Patterns may show:
- Strong features that resonate with customers
- Marketing tactics that consistently work
- Areas where competitors are outdated or missing features
- Customer segments they’re ignoring
Document these points in the competitive analysis framework.
8. Determine Your Positioning
At this stage, evaluate your own business in the context of everything you’ve learned.
Run a SWOT analysis to understand your strengths, weaknesses, opportunities, and threats.
Then define your unique value:
- A feature that solves a real pain point
- A smoother onboarding experience
- A more flexible pricing model
- A target segment your competitors haven’t focused on
These elements shape your unique value proposition.
Record all conclusions in your competitive analysis report
Conclusion
Competitor analysis isn’t about copying what others do. It’s about understanding the market, spotting opportunities, and making smarter decisions. When you regularly review your competitors, you see what customers respond to, where businesses fall short, and how your own offerings can improve. This clarity helps you create better products, refine your messaging, and strengthen your position in the market. With a clear process in place, you stay prepared for changes and can move faster than your competitors.
