As a business owner, it’s easy to get caught up in your own operations; serving clients, managing staff, and keeping cash flow ticking over.

But if you’re not actively analysing your competitors, you’re missing a key part of strategic growth.

Why?

Because understanding your competitors’ strengths, weaknesses, and positioning gives you critical insights to refine your strategy, identify gaps in the market, and differentiate effectively.

Today, let’s unpack how to conduct a practical competitor analysis and use it to make confident decisions that drive your business forward.

What is Competitor Analysis?

Competitor analysis is a structured approach to understanding:

Who your competitors are
What they offer and how they operate
Their strengths and weaknesses
How you compare and where opportunities lie

This isn’t about copying what they do. It’s about gaining clarity so you can:

Stand out in the market
Avoid their mistakes
Identify unmet customer needs
Adapt quickly to market shifts

Step 1: Identify Your Competitors

Start by mapping out:

1. Direct Competitors:

Businesses offering similar products or services to the same target market.

Example: Another bookkeeping firm targeting small trades businesses.

2. Indirect Competitors:

Businesses offering alternative solutions to the same problem.

Example: Software apps that automate bookkeeping tasks could be indirect competitors for a bookkeeping firm.

3. Emerging Competitors:

New entrants or trends disrupting your market.

Example: AI-based virtual bookkeeping services entering the industry.

Step 2: Gather Key Information

Here’s a practical checklist of what to research for each competitor:

Products or services offered: Range, quality, unique features.
Pricing structure: Rates, discounting strategies, bundled offers.
Marketing messages: Website copy, social media tone, advertising focus.
Customer base and target markets: Who are they attracting? Are there niches they’re overlooking?
Strengths: What do they do well? Customer service, turnaround times, branding, technology?
Weaknesses: Negative reviews, inconsistent quality, high staff turnover?
Customer reviews: Google, Facebook, and industry sites provide unfiltered insights.
Distribution and delivery channels: Online, physical, partnerships.
Recent changes or innovations: New offerings, rebrands, mergers.

Step 3: Analyse Competitor Strengths and Weaknesses

Here’s where insights turn into strategic opportunities.

Example:

A landscaping business noticed its main competitor offered fast quotes and online booking but had frequent complaints about poor communication and lack of attention to detail.

Opportunity: This business implemented next-day quotes and emphasised “attention to detail and communication” in their messaging, immediately appealing to dissatisfied customers of their competitor.

Step 4: SWOT Yourself Against Competitors

Conduct a SWOT analysis for your business with competitors in mind.

Strengths: What do you do better than them?

Weaknesses: Where are you falling behind?

Opportunities: Are there underserved market segments? Service gaps?

Threats: Are they introducing innovations that could affect your market share?

How to Perform a SWOT Analysis

Step 5: Identify Market Gaps and Differentiators

Competitor analysis isn’t just about defence – it’s about finding growth avenues.

Example:

A physiotherapy clinic analysed local competitors and found none offered women’s health physiotherapy despite strong local demand. By upskilling staff and marketing this service, they grew new client bookings by 25% within four months.

Step 6: Use Tools for Effective Competitor Analysis

Here are simple, practical tools for your analysis:

Google Alerts: Monitor competitor names for news, reviews, or new product launches.
Social media monitoring: Follow competitors to observe promotions, engagement, and customer comments.
SEMrush / Ubersuggest (freemium): Analyse website traffic, SEO keywords, and top-performing content.
Mystery shopping: Experience competitors’ services directly to assess quality and processes.
Customer surveys: Ask clients why they chose you over competitors – or vice versa if you lose quotes.

Step 7: Integrate Findings into Your Business Strategy

Competitor insights are only powerful if they inform your decisions.

Here are areas to integrate your analysis:

Marketing: Adjust messaging to highlight what differentiates you.
Pricing strategy: Reassess based on competitor pricing and value proposition.
Product or service development: Add offerings that fill gaps your competitors are leaving open.
Customer experience: Improve processes where competitors are weak.

My Real-World Example: Coffee Roastery

A boutique coffee roastery was losing café clients to a large national competitor.

The competitor analysis revealed:

The national competitor offered free barista training with supply contracts.
Their packaging was professionally branded with client logos, enhancing café branding.

Actions taken:

Introduced free barista refresher training for wholesale clients quarterly.
Offered customised labels for café-branded retail bags.
Highlighted “locally roasted, sustainably sourced” messaging to differentiate from national chains.
Result? Client retention improved, and new café accounts were won based on personalised service and branding support.

Tips for Effective Competitor Analysis

Make it a habit, not a one-off project. Review competitors quarterly to adapt to market changes.
Focus on insights, not copying. Your goal is to stand out, not replicate.
Use customer feedback to validate assumptions. What you perceive as a competitor’s strength may not match customer experiences.
Engage your team. Frontline staff often know what competitors are offering through customer conversations.

Red Flags to Avoid

Obsessing over competitors instead of customers. Use competitor insights to improve for your customers, not just to match others.
Competing only on price. This often leads to margin erosion and doesn’t build brand loyalty.
Ignoring indirect competitors. Innovation often comes from outside your traditional competitive set.

Practical Steps to Take This Week

List your top five direct competitors and top three indirect competitors.
Gather data on their offerings, pricing, and customer reviews.
Conduct a simple SWOT analysis comparing your business to theirs.
Identify one opportunity to implement this month that differentiates your business.
Schedule a quarterly competitor review session with your leadership team.

Stop Working Harder, Start Working Smarter

My Final Thoughts

Competitor analysis isn’t about fearing what others are doing.

It’s about understanding the landscape so you can position your business confidently, serve your customers better, and identify growth opportunities others miss.

If you’d like help conducting a thorough competitor analysis and integrating findings into your business strategy, consider Booking a Business Analysis with me today

Together, we’ll uncover the opportunities in your market and build a clear, practical roadmap to keep you ahead of the competition.

How To Stay Ahead In A Competitive Market