# Competitive analysis in practice: competitor types, methods

- URL: https://vladimirnovozhilov.com/en/blog/competitive-analysis-in-practice-competitor-types-methods/
- Author: Владимир Новожилов
- Published: 2026-07-29
- Category: Market research

> Competitive analysis reveals the market landscape, helps set price accurately and build positioning. This guide covers competitor types, practical methods, a step-by-step plan with a numeric example, recommended tools and a checklist.

Stop guessing — make decisions based on facts. Start with competitive analysis. Below is a practical guide: what to study, the types of competitors and which methods work (SWOT, [Porter's Five Forces](/en/blog/how-to-use-porter-s-five-forces-algorithm-scale-and-example/), PEST, benchmarking, market map), and how to run the whole process step by step. At the end — an example with a table and numbers, a [set of tools](/en/blog/competitive-analysis-in-2026-20-tools-and-how-to-choose/) and a checklist.

> **Short (TL;DR).** Competitor analysis is a systematic study of companies competing for your customers. It's needed to formulate your USP, set price and build positioning. Ideally analyze 5–10 competitors, apply 2–3 methods (comparison table + SWOT, and Porter's Five Forces if needed) and convert findings into an action plan. Do a full analysis 1–2 times a year and maintain ongoing [monitoring of prices](/en/blog/practical-competitor-price-analysis-collection-comparison/) and ads.

## What is included in competitive analysis

**Competitive analysis — the regular collection and interpretation of data about companies offering a similar product to the same audience. Its goal is to make more accurate decisions about product, price and marketing.** Essentially, it's a way to see the balance of power in the market and your place in it.

Do not confuse it with market research. Market research answers “how much money is in the niche and where it is going,” while competitor analysis answers “who is already fighting for the customer and how to beat them.” In practice these approaches go together: first estimate market size and trends, then analyze players in detail.

[Competitive intelligence](/en/blog/how-to-build-competitive-intelligence-goals-stages-and-tools/) is a narrower practice: continuous monitoring of competitors’ actions (prices, new products, ad campaigns). Competitor analysis is often run as a project for a specific task.

## Who are your competitors: direct, indirect and substitutes

Before diving deep, define the circle of rivals — this determines the focus of the study.

- **Direct competitors** — companies with the same product and the same audience. For a food delivery service, these are other delivery services in the same city. Start with them.
- **Indirect competitors** — offer a different product but solve the same customer need. For delivery that can be cafes with pickup or ready meals from the supermarket.
- **Substitutes** — a fundamentally different way to solve the task. Instead of ordering prepared food, a person can cook at home. Substitutes are easy to underestimate but often pull demand.
- **Potential competitors** — those not yet in the market but likely to enter: adjacent players, large platforms, startups.

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

Prioritization is simple: study direct competitors most deeply, be sure to look at indirect competitors and substitutes, and keep potential entrants on your radar. For most projects 5–10 companies in total are sufficient.

## Tasks solved by analysis

Analysis goals should always be practical — “just looking” doesn’t count. Key tasks it covers:

1. **Decide on launching or entering a market.** Understand competition level and whether there is an open niche.
2. **Formulate USP and [product advantages](/en/blog/how-to-find-and-strengthen-competitive-advantages/).** See what everyone already promises and find an unclaimed promise.
3. **Set an appropriate price.** Understand the price corridor and justify your position within it.
4. **Build positioning.** Occupy a distinct “shelf” in the customer’s mind instead of blending in.
5. **Find growth points in marketing.** Understand which channels, offers and formats work for competitors (essentially [analyzing competitors’ strategy](/en/blog/how-to-analyze-competitors-strategy-approach-methods-and/)).
6. **Reduce risks.** Avoid mistakes others have already made.

Fix the goal in advance — then the analysis won’t turn into infinite screenshot collecting. You will gather only data that affects the decision.

## Preparation: three steps before starting

Preparation takes 20% of the time but delivers 80% of the value. At this stage, do three things.

**1. [Fix the goal and the question](/en/blog/how-to-ask-questions-in-competitor-analysis-checklist/).** For example: “Why is our site conversion lower than the leaders?” or “Can we increase price by 15%?” One analysis — one main question.

**2. Compile the competitor list.** Look for them the way a customer would: search queries, marketplaces, review sites, recommendations, ads. Select 5–10 companies according to the types above.

**3. Choose comparison criteria.** This is the set of parameters you’ll use to evaluate everyone equally. Basic list:

- [product and assortment](/en/blog/how-to-compare-competitors-products-and-assortments-methods/);
- prices and terms;
- promotion channels and traffic;
- [website and funnel](/en/blog/how-i-analyze-competitors-websites-algorithm-metrics-tools/) (usability, offer, speed);
- service and support;
- reviews and reputation;
- strengths and weaknesses.

Unified criteria are the key to fair comparison, not “apples to oranges.”

## Methods and approaches: SWOT, Porter's Five Forces, PEST, benchmarking, market map

Methods differ by depth and purpose. You don’t need to use everything at once — pick 2–3 for the task.

### SWOT analysis

SWOT splits the situation into four fields: Strengths, Weaknesses, Opportunities and Threats. Strengths and weaknesses are internal factors; opportunities and threats are external. It’s useful to [build a SWOT for yourself and for each key competitor](/en/blog/swot-for-competitors-example-and-ready-matrix/), then compare: others’ weaknesses become your opportunities.

### Porter's Five Forces analysis

The Five Forces model assesses industry attractiveness through five factors: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes and competitive rivalry. The method answers “is it worth competing in this market at all and where is the pressure strongest.”

### PEST analysis

PEST studies the macro environment: Political, Economic, Social and Technological factors. It’s not about specific competitors but the forces that affect all players. Useful for strategic planning and entering new regions.

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

- **SPACE analysis** evaluates strategic position by financial strength, competitive advantage, environmental stability and industry attractiveness.
- **SNW analysis** — an extension of SWOT which adds a Neutral position “as everyone else.”
- **4P analysis** compares competitors by the marketing mix: Product, Price, Place, Promotion.

### Benchmarking

Benchmarking — comparing your metrics to a standard (usually the market leader) and adopting best practices. For example, measure your support response time vs the best player and raise your standard.

### Competitor map (market map)

A [competitor map](/en/blog/method-for-analyzing-competitors-positioning-and-usp/) is a visual diagram where players are placed along two axes important to the customer (e.g., “price” and “quality” or “assortment breadth” and “speed”). It instantly shows crowded zones and free niches for positioning.

### When to use which method: comparison table

| Method | What it assesses | When to apply | Complexity |
|---|---|---|---|
| Comparison table | Product, price, channels by criteria | Always, basic level | Low |
| SWOT analysis | Strengths/weaknesses, opportunities, threats | Positioning, strategy | Low |
| Competitor map | Positioning along 2 axes | Finding a free niche | Low |
| 4P analysis | Competitors' marketing mix | Marketing fine-tuning | Medium |
| Porter's Five Forces | Industry attractiveness | Market entry, investment | Medium |
| PEST analysis | Macro environment | New markets, long horizon | Medium |
| Benchmarking | Gap with leader by metrics | Process improvement | High |

For small business the first three tools are usually sufficient. Heavier methods (Porter, PEST, benchmarking) are used for major decisions.

## Step-by-step plan: how to run the analysis

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

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

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

**Step 2. Collect the competitor list.** 3–5 direct, 2–3 indirect, 1–2 benchmarks. Search like a customer.

**Step 3. Assess the overall level of competition.** How crowded is the niche, are there clear leaders, how many players. Here Porter's Five Forces and a broader [competitive environment analysis](/en/blog/how-to-analyze-the-competitive-environment-steps-methods/) are appropriate.

**Step 4. Gather data by unified criteria.** Fill the table: product, prices, channels, website, service, reviews. Use one approach to sources for everyone so comparison is fair.

**Step 5. Build the competitor map.** Place players along two axes important to the customer and find free zones.

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

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

**Step 8. Make an action plan.** Convert each conclusion into a concrete task with an owner and deadline. Otherwise the analysis will remain a nice document.

Frequency: full cycle — 1–2 times a year and before major decisions; monitor prices and ads monthly–quarterly.

## Example: case with table and numbers

Let’s walk through competitor analysis for a hypothetical web development agency in a mid-sized city. Goal: determine if average check can be increased and how to position.

Step 4 (data collection by criteria) produced this 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 site | 40+ | 18 | 6 | 3 |
| Warranty and support | 12 months | 6 months | 3 months | 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 estimate market shares. Even a rough estimate helps to see the balance of power.

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

**[How to calculate market share](/en/blog/estimating-competitors-sales-and-market-share-from-public/) (simplified).** Formula: `Share = Your revenue / Total niche revenue × 100%`. If total yearly order volume in the niche is estimated at 55 mln ₽, and your revenue is 10 mln ₽, market share ≈ 18%.

**Conclusions from the example:**

- You have the best reviews (4.8) and the fastest delivery among strong players, but a low average check and few case studies. This means you are underpricing yourself.
- Weak spot — evidence base: only 6 case studies vs 40+ for the leader. Clients don’t see proof of quality, so they won’t pay more.
- Free niche on the map — “high quality + short delivery + transparent support”. The leader is slow, cheap players don’t offer guarantees.

**Action plan:** grow the case library to 20+ within six months, introduce a 12-month warranty like the leader, raise the average check to 380 000 ₽ justified as “faster than the leader with comparable quality”, and strengthen SEO as the most sustainable channel. Thus competitive analysis becomes a concrete roadmap.

## Tools and services: what helps

You don’t need expensive software — most tasks are covered by a mix of free and paid tools, including [neural networks](/en/blog/competitive-analysis-with-ai-step-by-step-plan-and-10/).

**Competitor traffic and SEO:**
- [semantic and visibility services for SEO analysis](/en/blog/competitive-analysis-in-search-semantics-links-serp/) (keyword analysis, positions, traffic estimates);
- backlink and content analysis.

**Ads and creatives:**
- ad libraries for social networks and search engines — to view active competitor ads;
- [monitoring services for contextual advertising](/en/blog/how-to-analyze-competitors-ads-in-context-and-yandex-direct/).

**[Social media and content](/en/blog/how-to-analyze-competitors-social-media-content-a-practical/):**
- engagement analytics and posting frequency;
- [audience growth tracking](/en/blog/competitor-audience-analysis-methods-steps-and-examples/).

**Finance and legal entities (for B2B):**
- counterparty-check services — revenue, turnover, company links.

**Prices and assortment:**
- crawlers and price monitoring for e‑commerce;
- manual collection from sites and marketplaces.

**Free minimum:** search results, competitors’ websites, review sites and maps, social media, public financials, visibility counters with free tiers. For a start, small businesses usually have enough with this — add paid services when manual collection becomes a bottleneck.

## Common mistakes and how to avoid them

- **No goal.** Data collected but no purpose — the analysis gathers dust. Always start with a question.
- **Only direct competitors.** You miss substitutes that pull demand.
- **Different criteria for different companies.** Comparison loses meaning. Criteria must be uniform.
- **Blind copying.** “They do it — we’ll do it too.” Their solution might be a mistake or not fit your model.
- **One-off.** Market changes, and the analysis was done three years ago. Regular monitoring is needed.
- **Analysis without conclusions and actions.** The most common failure: a pretty table with no plan. Turn each conclusion into a task.
- **Overestimating scope.** 40 competitors superficially analyzed is worse than 6 deeply analyzed.

## Template and checklist: run the analysis yourself

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

**Competitor analysis checklist:**

- [ ] The goal and main question are defined
- [ ] List of 5–10 competitors compiled (direct, indirect, substitutes)
- [ ] Unified comparison criteria selected
- [ ] Overall level of competition in the niche assessed
- [ ] Comparison table filled for all players
- [ ] Competitor map built along two axes
- [ ] SWOT done for yourself and key rivals
- [ ] Prices and key metrics compared (benchmarking)
- [ ] Market shares estimated (even roughly)
- [ ] Three conclusions formulated: where stronger, where weaker, which niche to occupy
- [ ] Each conclusion converted into a task with owner and deadline
- [ ] Next review date scheduled

**[Mini template table](/en/blog/competitive-analysis-worksheet-template-criteria-and-example/)** (move to Excel or Google Sheets): rows — criteria (product, price, delivery time, channels, service, reviews, USP), columns — competitors and you. In the last column — a conclusion for each row. Such a document is a ready marketing competitor analysis in a handy format.

Analysis conclusions are the foundation for differentiation from the market: they form positioning and the unique selling proposition that sets you apart from competitors.

## FAQ: answers to frequent questions

Answers are placed in a separate block below — they are self-sufficient and good for quick lookup without reading the whole article.

Competitive analysis is not a one-time exercise but a working tool. It’s enough to create the table and checklist once and then keep them up to date. Then every decision about product, price and promotion will rely on market facts, not intuition.

## FAQ

### How many competitors should I analyze to get practical value?

Usually 5–10 companies in total are enough: 3–5 direct, 2–3 indirect, and 1–2 benchmarks for benchmarking. Depth matters more than quantity.

### How often should I update the analysis if the market is changing?

Do a full review 1–2 times a year and before major decisions. Monitor prices, promotions and ads monthly–quarterly to keep up with dynamics.

### How are indirect competitors different from substitutes?

Indirect competitors sell a different product but satisfy the same need. Substitutes are a fundamentally different way to solve the problem (for example, DIY instead of buying).

### Which data sources should I use and where is the line I shouldn't cross?

Rely on open sources: websites, search results, ad libraries, review sites, social media, public financials, visibility and counterparty-check services. Private data and insider information without consent — taboo.

### How do I turn analysis findings into concrete actions?

Turn each finding into a task with an owner and a deadline: what to change in the offer, price, channels, product. Add KPIs and a review date — otherwise the document will remain theoretical.