Competitive Analysis

Overview

Competitive analysis systematically evaluates competitors to understand market positioning, identify gaps, and inform strategic decisions. This skill provides frameworks and methodologies for thorough competitive intelligence gathering.

When to Use

• Entering a new market or segment
• Evaluating product positioning
• Identifying feature gaps
• Understanding pricing dynamics
• Assessing competitive threats
• Planning differentiation strategy

Core Frameworks

Porter's 5 Forces

Analyze industry structure through five competitive forces:

1. Competitive Rivalry

• Number and size of competitors
• Industry growth rate
• Product differentiation level
• Exit barriers
• Indicator: High rivalry = challenging margins

2. Supplier Power

• Supplier concentration
• Switching costs
• Unique inputs
• Forward integration threat
• Indicator: High power = cost pressure

3. Buyer Power

• Buyer concentration
• Purchase volume
• Switching costs
• Price sensitivity
• Indicator: High power = pricing pressure

4. Threat of Substitution

• Alternative solutions
• Price-performance trade-off
• Switching costs
• Buyer propensity to substitute
• Indicator: High threat = innovation pressure

5. Threat of New Entry

• Capital requirements
• Economies of scale
• Brand loyalty
• Regulatory barriers
• Indicator: High threat = margin pressure

Competitor Matrix

Create comparison table with:

Dimension	Competitor A	Competitor B	Your Position
Market Share	%	%	%
Pricing	$-$$$	$-$$$	$-$$$
Key Features	List	List	List
Strengths	List	List	List
Weaknesses	List	List	List
Trend	INC/DEC/CONST	INC/DEC/CONST	-

Positioning Map

Visualize competitive positioning on two key dimensions:

• X-axis: Feature richness (or price)
• Y-axis: Quality/premium positioning (or another differentiator)

Generate as Mermaid quadrant chart showing relative positions.

Research Process

Step 1: Identify Competitors

• Direct competitors (same product/market)
• Indirect competitors (different product, same need)
• Potential entrants (adjacent markets)
• Substitutes (alternative solutions)

Step 2: Gather Intelligence

Public Sources:

• Company websites and blogs
• Press releases and news
• Financial reports (if public)
• Job postings (reveals priorities)
• Social media presence
• Customer reviews
• Industry analyst reports

Search Patterns:

• "[competitor] pricing"
• "[competitor] vs [alternative]"
• "[competitor] review"
• "[competitor] funding" / "[competitor] revenue"
• "site:[competitor.com] features"

Step 3: Analyze Findings

• Map to Porter's 5 Forces
• Build competitor matrix
• Create positioning map
• Identify trend directions (INC/DEC/CONST)

Step 4: Synthesize Insights

• Competitive advantages/disadvantages
• Market gaps and opportunities
• Threat assessment
• Strategic recommendations

Output Structure

## Competitive Landscape Overview
[Summary of competitive environment]

## Porter's 5 Forces Analysis
[Force-by-force assessment with ratings]

## Competitor Profiles
[Detailed profiles of top 3-5 competitors]

## Competitive Matrix
[Comparison table]

## Positioning Map
[Mermaid quadrant chart]

## Key Insights
1. [Insight with implication]
2. [Insight with implication]

## Strategic Recommendations
- [Recommendation based on analysis]

Trend Indicators

Apply three-valued logic to competitor trajectories:

• INC: Growing market share, expanding features, positive momentum
• DEC: Losing share, reducing investment, negative signals
• CONST: Stable position, maintaining but not growing

Best Practices

• Update analysis quarterly at minimum
• Cross-validate from multiple sources
• Note source reliability and dates
• Distinguish facts from speculation
• Consider regional variations
• Track competitor job postings for strategy hints

Additional Resources

For detailed frameworks and templates, see:

• references/porters-five-forces.md - Complete Porter's framework
• references/competitive-matrix-template.md - Matrix templates
• examples/competitive-analysis-report.md - Sample report