Competitor Analysis: What to Look For and What to Ignore
A good competitor analysis shows you where the market is crowded and where it is open. A bad one turns into a list of features to copy.
Key takeaways
- Start a competitor analysis with the alternatives your customers actually consider, which may include doing nothing.
- Public tools such as the Google Ads Transparency Center and Meta Ad Library show what rivals are running.
- Look for crowded claims and open positions, rather than features to copy.
Most companies watch their competitors closely, especially when sales slow down. When they notice a new website, a price change or a campaign, they often react. Reaction is not the same as analysis, though. Without a method, studying rivals mostly produces anxiety and imitation.
Who belongs in your competitor analysis
Start with the alternatives your customers actually consider, not the companies you worry about. So ask recent buyers what else they looked at. The answers often include options you would not list, such as an in-house hire, a cheaper tool or simply doing nothing.
Then group the alternatives into three types: direct rivals offering the same thing, substitutes solving the same problem another way, and the status quo. Each type also needs a different response.
What to gather
- Positioning. The main claim on each homepage, and who it is aimed at.
- Offer and price. Packages, published prices and how they handle discounts.
- Proof. Case studies, client logos, reviews and awards.
- Channels. Where they advertise, publish and speak.
- Sales process. How easy it is to get a quote or a meeting.
Several free tools help with this step too. The Google Ads Transparency Center shows ads that an advertiser is running on Google. Meta’s Ad Library does the same for Facebook and Instagram. Review sites and job postings also reveal a lot, because hiring plans often signal strategy.
How to read the results
When the data is in, lay the main claims side by side. Usually, several competitors say almost the same thing, such as fast service or proven results. Those crowded claims are weak ground, because buyers cannot tell the options apart.
Next, look for what nobody says. Perhaps no rival specializes in your best segment, or none offers a fixed price. Those gaps are where your positioning can stand out, because buyers notice what is different.
Finally, check the gap against your strengths. An open position only helps if you can credibly fill it, and if buyers care about it.
Talk to the deals you lost
Desk research only shows what competitors say. Lost deals show what buyers believed. So interview a few prospects who chose a rival in the last six months, and ask what tipped the decision.
Keep the tone curious rather than defensive, because people share more when they do not feel judged. Their answers often reveal a strength the rival never advertises, such as faster onboarding or a local office.
What to ignore in a competitor analysis
- Feature lists. Matching features one by one makes you more similar rather than more attractive.
- Vanity numbers. Follower counts and award badges say little about how a rival actually wins business.
- Every move. Reacting to each campaign keeps you on their agenda instead of yours.
How often to repeat it
A full competitor analysis once a year is usually enough, with a light check each quarter. Also repeat it when you lose several deals to the same rival, since that pattern deserves a closer look.
The findings feed straight into brand positioning, because positioning is about winning against the alternatives. For help running your competitor analysis, book a free diagnosis.
Related guides
Find out where your marketing is bleeding.
Brand Doctor is based in Vancouver and offers a free marketing diagnosis to businesses across Canada, in person or remotely. You leave knowing what’s holding growth back and what to fix first.
