How to do a competitive analysis

Let’s say you’re starting your own business. Or you’re trying to build a new digital strategy. Or you want to be the next Kardashian. Or you want to launch a super exciting new marketing campaign that’s going to blow last year’s sales out of the water. Awesome, go you! Here’s the thing: regardless of what you’re trying to do, who you’re trying to reach, and what you ultimately want to accomplish, you need to know what you’re up against. That means, you need to do a competitive analysis. 

A competitive analysis is exactly what it sounds like -- an analysis of your competitive landscape. It’s looking at those who are in the same space as you, assessing what they’re doing right and wrong, what you can learn from them, and most importantly -- what space exists for you to stand out. This is an exercise we recommend [and do!] with each and every one of our clients, and it’s beneficial on so many levels. It’s a perfect first step in outlining your own strategy, and it helps you keep focused on the opportunities for your particular brand. Once you get a lay of the landscape you can fully see where your business can shine -- it can inform the digital platforms you put your time and energy in, and it can inspire you to be a bit creative with the type of content you might produce and share. 

Beyond tactics you might employ, by looking at your competitors you can truly see what sets you and your brand/business apart. It’s a great exercise to help you hone your identity, and help you frame to your audience the value that you add to their lives. 

So how do you actually do one? 

First, you need to identify your competitors. For the purposes of the analysis, we like to pick 3-4 competitors to focus on. If you’re in a more traditional field there could be plenty of competition. It might be hard just to narrow the field down. That’s ok! Our advice is to choose the competitors who are most like you, taking into account things like size and location. However, you might work at a non-profit and think you don’t have any competitors at all because anyone you would deem a “competitor” is actually doing similar work. In that case, call them something else! But still analyze them. 

Sometimes, we also like to throw in what we call an aspirational set -- another cohort of businesses that aren’t direct competitors, but someone we like the vibe of. Maybe you run a coffee shop but you love the online presence of the dog-walking service down the street. Maybe your non-profit focuses on early childhood education, but you’re always inspired by that diabetes foundation you follow on Instagram. Add them to your analysis as your aspirational set!

The next step is research, research, research. Get out a big old spreadsheet to keep track of everything, and start documenting. For digital strategy, ask these types of questions: What platforms are they on? Do they have a newsletter? What social accounts do they run, how many followers do they have? How often are they posting and where? What types of content are they posting (graphics, videos, customer testimonials, tutorials?) Is the content resonating with the audience (i.e. are there a lot of comments/likes/views compared to their total number of followers?) You might also want to consider brick-and-mortar or IRL offerings and add to your fact-finding mission (like events, giveaways, fundraising auctions, etc.). If you’re also doing an aspirational set, repeat this for them as well. 

Then, analyze all your research. Where are your competitors knocking it out of the park? Do you want to play there or is there a platform you competitors aren’t on that you could break out in? What’s the tone of voice they’re using and is it the same or different from your brand voice? Is there something you can learn from them? For example, is there a tactic like an annual partnership that they seem to drive a lot of buzz from that you could emulate, or do they have a loyal newsletter following that could be worth trying for your business? Is there a common theme that is standing out across your competitors? Are there certain types of content that resonate with the audience consistently? 

For an aspirational set, what is resonating with their audience that you could co-opt for yours? Is there a style of graphic or video they’re using that consistently performs well? Is their tone of voice worth emulating? Or their quick response to user comments and feedback? Are they super creative on a platform you’ve never tried? What can you learn from what they’re doing? 

Finally, identify your takeaways. This is where you utilize everything you’ve just done to build clear and concise action on your part. What are your next steps? Will you revamp your website, or invest in a redesign? Will you launch on a new platform or start producing tutorials or build a membership model? This is where you can really showcase the space for your brand to be the star of the show. You’ve seen what works and what could be stronger in your competitors and your aspirational set, now it’s your turn to use everything you’ve learned to crush your goals. 

If you’re doing the competitive analysis for a client or a boss, you would  include all of this information into a clean and easily digestible presentation. If it’s just for you, just save it somewhere with your takeaways accessible so you can come back to it time and again. And remember, this is an exercise to help you carve out your own path, not to get you bogged down in what your competitors are doing so well that you don’t have the resources to compete with right now. There are opportunities everywhere, no matter the size of your business or the length of time it’s been in operation. The competitive analysis just helps you find them and concretely apply them to your goals.