How to do competitor analysis: a practical method for startups

"We have no competitors" is one of the sentences investors hear most and believe least. Every problem has a solution today: software, a spreadsheet or doing nothing. Good competitor analysis sharpens your difference and shapes your strategy.

1. Identify competitors

• Direct: solve the same problem for the same customer in a similar way
• Indirect: solve the same problem differently
• Status quo: what the customer does today (manual tracking, spreadsheets, consultants)
• Future: large companies that could enter

Asking "How do you solve this today?" in customer interviews gives the most realistic list. See our customer interview guide.

2. Gather information

• Websites, pricing pages, product documentation
• User reviews in app stores and software comparison sites
• Competitors' job ads (they show where they are investing)
• Funding announcements and press
• Trying the product yourself

3. Comparison table

Put competitors in rows and the criteria customers care about in columns: target customer, core features, price, ease of setup, integrations, support, local language and regulatory fit. Do not pick only criteria you win; an honest table is more convincing.

4. Positioning map

Pick the two dimensions that matter most to customers (for example price and ease of use) and place competitors on a two-axis chart. Empty space may be your opportunity.

5. Turn analysis into strategy

• Focus where competitors are weak and customers care.
• Complaints in user reviews are valuable input for your roadmap.
• Position your pricing relative to competitors; see our pricing guide.

In the investor deck

• Do not belittle competitors; they prove the market exists.
• State your difference in one or two clear sentences.
• Be ready for "What if a big company does this?"; see our pitch guide.

Conclusion

Competitor analysis is a habit, not a one-off task. Update your table quarterly and share what you learn with the team.