Competitive Analysis



The word analysis comes from Ancient Greek, Ana-“a breaking up and Lysis – “a loosening”.  So basically what you doing is taking all the data you collected and are sorting it out into manageable groups.

You’ve already looked closely at your digital competitors, you’re now ready to develop the intelligence about what’s working, why it is working, and what opportunities are available for your product in the evolving marketplace. After all, you don’t want to just launch a product that copies all your competitors’ features as is. You also don’t want your ultimate analysis to just be a side-by-side feature comparison of them, or want to offer more features than your competitors because that’s not the point of UX strategy. You want to offer the right features for product that will be beneficial to your target market.


It’s time to put that spreadsheet to good use.

Firstly look at your spreadsheet and look at all your competitors one by one. Look at each website, and try to find out how much traffic they each get. Next look at how much people are talking about that product, what are the people’s emotion with that product.

You can sort the competitors for this step with colours eg. Green for excellent, yellow for mediocre, and red for bad.

Next you have to sort the competitors in groups eg. All the desktop apps in one group and all mobile apps in a group. Just so that you know what you comparing.


Next you have to benchmark each competitor. By benchmarking you have to see how well each product shows their value to its target customers.  When you benchmark the indirect competitors, you’re analysing how these digital products offer alternative ways to solve a problem.

You are looking for trends, patterns, gaps, and an overall sense of the look of the landscape. Often, you will notice common patterns being repeated across many sites within a vertical market.


At this point you can say which competitor is number one, number two, and who’s doing something impressive even if they’re farther behind in the marketplace race than others. You have a sense of the diversity of business models in play.

Use your analysis to answer the following questions about each competitor in a brief paragraph:

  • How is it competing against your value proposition?
  • If it’s a direct competitor, what is it doing great or particularly badly?
  • If it’s an indirect competitor, is it competing with a similar solution or is it going after a similar target customer?