# Competitive Analysis: Types, Methods, and Stages

- URL: https://vladimirnovozhilov.com/en/blog/analiz-konkurentov-metody-etapy/
- Author: Владимир Новожилов
- Published: 2026-07-29
- Category: Market research

> Competitive analysis is the systematic study of your market rivals in order to find your own advantages, price more accurately, and build positioning. In this article we break down the types of competitors, the methods (SWOT, Porter's Five Forces, PEST, benchmarking, a market map), a step-by-step plan, a ready-made example with numbers, tools, and a checklist.

Competitive analysis is the first practical step toward no longer guessing and starting to make decisions based on facts. Below is a self-contained guide: what competitive analysis is, what types of competitors exist, which methods work (SWOT analysis, Porter's Five Forces analysis, PEST analysis, benchmarking, a competitor map), how to run a competitive analysis step by step, plus a ready-made example with a table and numbers, a list of tools, and a checklist.

> **In short (TL;DR).** Competitive analysis is the systematic study of companies that compete for your customers. You need it to formulate your USP, set a price, and build your positioning. The optimal approach is to study 5–10 competitors, apply 2–3 methods (a comparison table + SWOT, and Porter's Five Forces if needed), and turn the findings into an action plan. Do a full analysis once or twice a year and keep ongoing monitoring of prices and advertising.

## What competitive analysis is

**Competitive analysis is the regular collection and interpretation of data about companies that offer a similar product to the same audience, with the goal of making more accurate decisions about product, price, and marketing.** It is sometimes called competitor analysis or marketing analysis of competitors — the essence is the same: understand the balance of power in the market and find your own place in it.

It is important not to confuse competitive analysis with market analysis. Market analysis answers the question "how much money is in the niche and where is it heading," while competitive analysis answers "who is already fighting for the customer and how do we beat them." In practice, these studies complement each other: first you assess the capacity and trends of the market, then you analyze the specific players in detail.

Competitive intelligence is a narrower term: it is the continuous monitoring of rivals' actions (prices, new offerings, ad campaigns), whereas competitive analysis is more often done as a project, for a specific task.

## Types of competitors: direct, indirect, substitutes

Before studying your rivals, decide exactly who counts as a competitor. That determines where to look.

- **Direct competitors** are companies with the same product and the same audience. For a food delivery service, these are other delivery services in the same city. You always start with them.
- **Indirect competitors** offer a different product but address the same customer need. For food delivery, these are cafés with takeout or ready-made meal kits from the supermarket.
- **Substitute products** are a fundamentally different way to solve the task. Instead of ordering ready-made food, a person can cook it themselves. Substitutes are easy to underestimate, but they are often exactly what pulls demand away.
- **Potential competitors** are those not yet on the market but who could enter: adjacent players, large platforms, startups.

![Three circles of competitors: who to look at first](./images/analiz-konkurentov-metody-etapy-types.png)

The priority rule is simple: analyze direct competitors most deeply, always look at the indirect ones and substitutes, and keep potential ones on your radar. For most projects, 5–10 companies in total are enough.

## Why you need competitive analysis: goals and objectives

The goals of competitive analysis are always applied — "just taking a look" does not count. Here are the main objectives it addresses.

1. **Make a decision about a launch or market entry.** Understand the level of competition and whether there is an open niche.
2. **Formulate your USP and product advantages.** See what everyone is already promising and find an unclaimed promise.
3. **Set an adequate price.** Understand the price range and justify your place within it.
4. **Build your positioning.** Claim a separate "shelf" in the customer's mind instead of blending in with the market.
5. **Find growth points in marketing.** Understand which channels, offers, and formats work for your rivals.
6. **Reduce risks.** Avoid stepping on the rakes others have already tripped over.

If you formulate the goal in advance, competitive analysis will not turn into an endless collection of screenshots — you will gather only the data that affects the decision.

## Preparing for a competitive analysis

Preparation takes 20% of the time but determines 80% of the value. At this stage you need to do three things.

**1. Lock in the goal and the question.** For example: "Why is our website conversion lower than the leaders'?" or "Can we raise the price by 15%?" One analysis — one main question.

**2. Build a list of competitors.** Look for them the same way a customer does: search queries, marketplaces, review sites, recommendations, advertising. Select 5–10 companies by the types from the section above.

**3. Choose comparison criteria.** This is the set of parameters by which you will assess everyone the same way. The basic list:

- product and range;
- prices and terms;
- promotion channels and traffic;
- website and funnel (usability, offer, speed);
- service and support;
- reviews and reputation;
- strengths and weaknesses.

Uniform criteria are what guarantee that the comparison is fair, not "apples to oranges."

## Competitive analysis methods: SWOT, Porter's Five Forces, PEST, benchmarking, market map

Competitive analysis methods differ in depth and purpose. You do not need to apply them all at once — choose 2–3 for your task.

### SWOT analysis

SWOT analysis lays out the situation across four fields: strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are about internal factors, opportunities and threats are about the external environment. It is convenient to build a SWOT for yourself and for each key competitor, and then compare them: others' weaknesses are your opportunities.

### Porter's Five Forces analysis

Porter's Five Forces analysis assesses the attractiveness of a market through five factors: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and the intensity of competition within the industry. The method answers the question "is it even worth fighting in this market, and where is the pressure strongest here."

### PEST analysis

PEST analysis studies the macro environment: political, economic, social, and technological factors. It is not about specific competitors but about the forces that affect all players at once. It is useful in strategic planning and when entering new regions.

### Other methods: SPACE, SNW, 4P

- **SPACE analysis** assesses a company's strategic position by financial strength, competitive advantages, environmental stability, and industry attractiveness.
- **SNW analysis** is an extension of SWOT that adds a neutral position ("same as everyone") to strengths and weaknesses.
- **4P analysis** compares competitors by the marketing mix: product, price, place, and promotion.

### Benchmarking

Benchmarking is comparing your metrics against reference ones (usually the market leader) and adopting best practices. For example, you measure the support response speed at your company and at the best player and pull your standard up.

### Competitor map (competitive market map)

A competitor map is a visual chart where players are placed along two axes that matter to the customer (for example, "price" and "quality" or "range breadth" and "speed"). It instantly shows crowded zones and open niches where you can stake out a position.

### Comparison table of methods: when to choose which

| Method | What it assesses | When to apply | Complexity |
|---|---|---|---|
| Comparison table | Product, price, channels by criteria | Always, the baseline level | Low |
| SWOT analysis | Strengths/weaknesses, opportunities, threats | Positioning, strategy | Low |
| Competitor map | Placement along 2 axes | Finding an open niche | Low |
| 4P analysis | Rivals' marketing mix | Fine-tuning marketing | Medium |
| Porter's Five Forces | Industry attractiveness | Market entry, investment | Medium |
| PEST analysis | Macro environment | New markets, long horizon | Medium |
| Benchmarking | Gap with the leader on metrics | Improving processes | High |

For a small business, the first three rows are usually enough. The heavy artillery (Porter, PEST, benchmarking) is brought in for major decisions.

## How to run a competitive analysis: a step-by-step plan

Below is a universal competitive analysis plan that works in B2B, IT, and services.

![How the focus narrows: from the market to concrete decisions](./images/analiz-konkurentov-metody-etapy-steps.png)

**Step 1. Define the goal and the main question.** What do you want to decide as a result — price, offer, channel, market entry.

**Step 2. Compile the list of competitors.** 3–5 direct, 2–3 indirect, 1–2 benchmarks. Look through the customer's eyes.

**Step 3. Assess the overall level of competition.** How saturated the niche is, whether there are clear leaders, how many players there are. Porter's Five Forces fits here.

**Step 4. Collect data by uniform criteria.** Fill in the table: product, prices, channels, website, service, reviews. One data source for all, so the comparison is fair.

**Step 5. Build a competitor map.** Place the players along two axes that matter to the customer and find the open zones.

**Step 6. Apply the methods.** Do a SWOT for yourself and 2–3 key competitors, and if needed, 4P and benchmarking of prices and metrics.

**Step 7. Formulate the conclusions.** Three things: where we are stronger, where we lag, and which niche and promise to claim.

**Step 8. Draw up an action plan.** Turn each conclusion into a specific task with an owner and a deadline. Otherwise the analysis will remain a nice-looking document.

Frequency: the full cycle — once or twice a year and before major decisions; monitoring of prices and advertising — monthly to quarterly.

## Competitive analysis: an example with a table and numbers

Let's work through a competitive analysis on a hypothetical example — a web development agency in a mid-sized city. The goal: to understand whether the average check can be raised and how to position the company.

Step 4 (collecting data by criteria) produced the following comparison table.

| Criterion | Company A (leader) | Company B | Your company | Company D |
|---|---|---|---|---|
| Average project check, ₽ | 480,000 | 350,000 | 300,000 | 220,000 |
| Delivery time, weeks | 10 | 8 | 7 | 6 |
| Case studies on the website | 40+ | 18 | 6 | 3 |
| Warranty and support | 12 mo | 6 mo | 3 mo | none |
| Reviews (out of 5) | 4.7 | 4.4 | 4.8 | 4.1 |
| Main channel | SEO + content | Paid search | Word of mouth | Social media |

Now let's estimate the market shares. Even a rough estimate helps you see the balance of power.

![Market shares in the case example: where to look for a growth point](./images/analiz-konkurentov-metody-etapy-share.png)

**How to calculate market share (simplified).** The formula: `Share = Your revenue / Total niche revenue × 100%`. If the total volume of orders in the niche per year is estimated at 55 million ₽ and your revenue is 10 million ₽, your market share is ≈ 18%.

**Conclusions from the example:**

- You have the best reviews (4.8) and the fastest delivery time among the strong players, yet a low average check and few case studies. This means you are underpricing yourself.
- The weak spot is the evidence base: only 6 case studies versus 40+ for the leader. The customer sees no proof of quality and therefore is not ready to pay more.
- The open niche on the map is "high quality + short delivery time + transparent support." The leader is slow, and the cheap players offer no warranties.

**Action plan:** grow the case study library to 20+ over six months, introduce a 12-month warranty like the leader's, raise the average check to 380,000 ₽ with the justification "faster than the leader at comparable quality," and strengthen SEO as the most sustainable channel. That is how competitive analysis turned into a concrete roadmap.

## Tools and services for competitive analysis

You do not need expensive software to run a competitive analysis — most tasks are covered by a combination of free and paid tools.

**Competitors' traffic and SEO:**
- semantics and search-visibility services (keyword analysis, rankings, traffic estimation);
- backlink and content analysis.

**Advertising and creatives:**
- social media and search ad libraries — to see rivals' active ads;
- context ad monitoring services.

**Social media and content:**
- engagement and posting-frequency analytics;
- audience growth tracking.

**Finances and legal entities (for B2B):**
- counterparty verification services — revenue, turnover, company connections.

**Prices and range:**
- parsers and price monitoring for e-commerce;
- manual collection from websites and marketplaces.

**The free minimum:** search results, competitors' websites, review sites and maps, social media, public reporting, and visibility counters with free limits. For a small business starting out, this is enough — bring in paid services when you hit the ceiling of manual collection.

## Common mistakes in competitive analysis

- **No goal.** You collected data but don't know what for — the analysis gathers dust in a folder. Always start with a question.
- **Only direct competitors.** People miss substitutes, which pull demand away.
- **Different criteria for different companies.** The comparison loses meaning. Criteria must be uniform.
- **Blind copying.** "They do it this way — so will we." Someone else's decision may be their mistake or may not suit your model.
- **One-off effort.** The market changes, but the analysis was done once three years ago. You need regular monitoring.
- **Analysis without conclusions and actions.** The most common trouble: a nice table with no plan. Turn each conclusion into a task.
- **Overestimating volume.** 40 competitors superficially is worse than 6 deeply.

## Template and checklist for competitive analysis

To run the analysis on your own, build a table with competitor columns and criteria rows (see the example above) and go through the checklist.

**Competitive analysis checklist:**

- [ ] The goal and main question are formulated
- [ ] A list of 5–10 competitors is compiled (direct, indirect, substitutes)
- [ ] Uniform comparison criteria are chosen
- [ ] The overall level of competition in the niche is assessed
- [ ] The comparison table is filled in for all players
- [ ] A competitor map is built along two axes
- [ ] A SWOT is done for yourself and key rivals
- [ ] Prices and key metrics are compared (benchmarking)
- [ ] Market shares are estimated (at least roughly)
- [ ] Three conclusions are formulated: where you are stronger, where weaker, which niche to claim
- [ ] Each conclusion is turned into a task with an owner and a deadline
- [ ] A date for the next review is set

**Mini table template** (move it into Excel or Google Sheets): rows are criteria (product, price, delivery time, channels, service, reviews, USP), columns are competitors and you. In the last column, a conclusion for each row. Such a document is a ready-made marketing analysis of competitors in a convenient form.

The findings of the analysis are the foundation for differentiating from the market: it is on their basis that you formulate the positioning and unique selling proposition that set you apart from competitors.

## FAQ: common questions about competitive analysis

The answers are placed in a separate block below — they are self-contained and work if you need a quick answer without reading the whole article.

Competitive analysis is not a one-off exercise but a working tool. It is enough to build the table and checklist once and then keep them up to date. Then every decision about product, price, and promotion will rest on facts about the market rather than intuition.

## FAQ

### What is competitive analysis in simple terms?

It is the systematic study of companies that compete for the same customers as you: their products, prices, promotion channels, and strengths and weaknesses. The goal is to understand how you can stand out favorably and avoid repeating others' mistakes. In essence, it is gathering facts about the market and turning them into concrete decisions about product, price, and marketing.

### How often should you run a competitive analysis?

A full competitive analysis is enough to do once or twice a year, plus before a product launch, entering a new market, or changing your pricing policy. Monitoring of key indicators (prices, promotions, new offerings, advertising) should be ongoing — monthly or quarterly — so you can react to changes in time.

### How many competitors do you need to analyze?

For practical conclusions, 5–10 companies are enough: 3–5 direct competitors, 2–3 indirect ones, and 1–2 potential players or market leaders as a benchmark. More data rarely improves the decision but sharply increases the effort. It is better to study 5 rivals deeply than 30 superficially.

### Which competitive analysis method should a small business choose?

Start with a comparative analysis using a criteria table (product, price, channels, service) and a SWOT analysis of 3–5 competitors. That is enough for most decisions. Bring in Porter's Five Forces and PEST analysis when you are assessing the attractiveness of the market as a whole or planning major investments.

### How is competitive analysis different from market analysis?

Market analysis studies demand, size, growth rates, segments, and trends as a whole. Competitive analysis is a part of it, focused on specific players: who they are, what they are strong and weak at, and how they fight for the customer. Usually you first assess the market and then analyze the competitors within it in detail.