What Is Competitor Analysis? Finding the Gap, Not Copying the Leader
DICTIONARY · FUNDAMENTALS

What Is Competitor Analysis?

Competitor analysis is examining what other businesses in your market offer, claim and charge, in order to find where you can be different.

In plain English

The purpose is differentiation, not imitation. Analysis that concludes you should do what the market leader does has produced the one answer guaranteed not to work, because they are already established at it.

It also matters who you count. The real alternative is often doing nothing, using a spreadsheet, or handling it in-house, and none of those appear in a competitor list.

What to know

Find the gap
What nobody in the market is saying or serving.
Include indirect alternatives
Doing nothing, doing it manually, doing it internally.
Look at what they charge
Pricing tells you how they are positioned.
Read their reviews
Customer complaints about competitors are your opportunity list.

Why it matters

The most useful output is usually a list of what everyone in the category says, so you can say something else. Sameness is the default outcome of competitor research done for reassurance rather than for difference.

Common mistakes

×Copying the market leader's positioning.
×Ignoring indirect and in-house alternatives.
×Analysing features and ignoring how they are perceived.
×Doing it once at launch and never again.

FAQs

Who counts as a competitor?

Anything a customer would consider instead of you, including doing nothing.

What should I look at first?

Their reviews. Complaints about them are the clearest statement of what the market wants.

WRITTEN BY TARIQ SALLAM
Marketing Consultant. Entrepreneur. Content Creator.

I'm a marketing consultant, entrepreneur and content creator. I help businesses grow through practical marketing, websites, SEO, content and AI.

More About Tariq →