How to Do a Competitor Analysis

A competitor analysis is a structured comparison of the businesses your customers could choose instead of you. List them, compare them on the same factors, find the gaps, and turn each gap into an action. [FounderPal](/) includes a free Competitor Finder for the first step.

Why do a competitor analysis?

Do it before you set your positioning, and again when your market changes. It informs four decisions:

• Positioning: what you claim that others do not.
• Pricing: where your price sits next to the alternatives.
• Channels: where your customers already find competitors.
• Messaging: which words are overused and which are missing.

How to do a competitor analysis

Step 1. Find your direct and indirect competitors

Direct competitors sell a similar solution to the same customer. Indirect competitors solve the same problem in a different way, including a spreadsheet, an agency or doing nothing.

In the Competitor Finder, enter four things: a business description, your target audience, your target market and the language of the report. It returns 10 competitors, each with a name, a website URL, a type and a short description.

Review the list and drop the ones your customers would not actually consider. Add any that customers mention in conversations. To see what the output looks like, browse the competitor research examples.

Step 2. Choose what to compare

Pick the factors before you look at any competitor, then use the same ones for every business:

• Who it is for
• Main promise
• Offer and plans
• Price
• Main channels
• Messaging
• Customer complaints

Step 3. Collect the information

Most of what you need is public. Look at each competitor's homepage, pricing page and product pages, then read customer reviews, social profiles, the ads they run, their content and the emails they send.

Write each finding in your own words next to the factor it belongs to. FounderPal's AI Competitor Analysis feature also scans competitor websites for insights if you want a faster first pass.

Step 4. Compare positioning, pricing, channels and messaging

Read across each row of your comparison, not down one competitor at a time.

• Positioning: read the headline on each homepage. Who is it aimed at, and what is the single promise?
• Pricing: note the price model (free, subscription, one-time, quote) and what sits in each plan, not only the number.
• Channels: see where each one gets attention, such as search, social, communities, partnerships or paid ads.
• Messaging: list the words that repeat across competitors and the proof they use, such as reviews, case studies and guarantees.

Step 5. Spot the gaps

A gap is something customers want that no competitor does well. Look in three places:

• Complaints that repeat in reviews of several competitors.
• Customer segments that no competitor speaks to.
• Claims that every competitor makes in the same words.

Each gap is a candidate for your positioning. Check it against real customers before you build on it.

Step 6. Turn findings into actions

Write one decision per finding, who owns it and a date to review the result. For example: change the homepage promise, test a different price model or start publishing in a channel your competitors ignore.

To organize the findings, run your business through the SWOT Analysis Generator, then sharpen your offer with the Value Proposition Generator. If you need a different structure for the comparison, see competitor analysis frameworks.

Competitor analysis template

Copy this table, put your business in the first column and one competitor in each of the others. Fill every row with what you found in step 3.

FAQ

How often should you do a competitor analysis?

Do a full one when you launch or change your positioning. After that, review it when a competitor changes its price or message, when a new one appears or when your sales shift. A short check every few months keeps the table current.

How many competitors should I analyze?

Start with the 10 the Competitor Finder returns, then narrow to the three to five closest to what your customer would actually choose. Fewer, well-researched competitors teach you more than a long list with thin notes.

What is the difference between direct and indirect competitors?

Direct competitors offer a similar solution to the same customer. Indirect competitors solve the same problem another way, such as a spreadsheet, a freelancer or no tool at all. Include both, because customers compare you with both.