Competitive Analysis

Competitive Analysis

Comprehensive competitive landscape mapping using Porter's Five Forces, competitor profiling, positioning matrices, and moat analysis.

Required Inputs

Execution Steps

Step 1: Define the Competitive Arena

Before listing competitors, define the arena precisely:

1. Market definition: What specific market or segment?
2. Customer definition: Whose wallet share is being contested?
3. Job-to-be-done: What problem does the customer hire this product to solve?
4. Geographic boundaries: Where does competition occur?
5. Value chain position: Which part of the value chain?

Step 2: Competitor Identification & Categorization

Identify competitors in three tiers:

For each competitor, gather:

• Revenue (or estimated revenue range)
• Employee count and growth rate
• Funding/capitalization
• Customer count and key logos
• Geographic presence
• Product breadth
• Recent strategic moves (last 12-18 months)

Step 3: Porter's Five Forces Analysis

Score each force on a 1-5 scale (1 = weak force / favorable, 5 = strong force / unfavorable):

Force 1: Threat of New Entrants

• Capital requirements to enter
• Regulatory barriers
• Economies of scale advantages of incumbents
• Brand loyalty / switching costs
• Access to distribution channels
• Technology/IP barriers

Force 2: Bargaining Power of Suppliers

• Supplier concentration vs. industry concentration
• Importance of volume to suppliers
• Switching costs for inputs
• Availability of substitute inputs
• Threat of forward integration

Force 3: Bargaining Power of Buyers

• Buyer concentration vs. industry concentration
• Buyer switching costs
• Buyer price sensitivity
• Buyer information availability
• Threat of backward integration

Force 4: Threat of Substitutes

• Availability of close substitutes
• Price-performance trade-off of substitutes
• Buyer propensity to switch
• Switching costs to substitutes

Force 5: Competitive Rivalry

• Number and size of competitors
• Industry growth rate
• Product differentiation
• Exit barriers
• Fixed cost structure / capacity utilization

Overall industry attractiveness: Average of five forces (1-5 scale). Below 2.5 = attractive; above 3.5 = unattractive.

Step 4: Competitor Profiling (Deep Dive)

For each top 3-5 direct competitors, build a profile:

1. Strategy characterization: Cost leader, differentiator, niche player, or disruptor?
2. Value proposition: What do they promise customers? (In their own words from website/marketing)
3. Target customer: Who do they sell to? (ICP)
4. Business model: How do they make money? (Revenue model, pricing, margin structure)
5. Strengths: What are they genuinely good at?
6. Weaknesses: Where are they vulnerable?
7. Recent moves: Last 3-5 strategic actions (acquisitions, product launches, partnerships, pricing changes)
8. Likely next moves: Based on their trajectory, what will they do next?
9. Response profile: How do they typically respond to competitive threats? (Aggressive, defensive, ignore)

Step 5: Positioning Map (2x2 Matrix)

Build one or more 2x2 positioning maps:

Axis selection criteria — axes must be:

• Important to customers (validated buying criteria, not internal metrics)
• Differentiating among competitors (meaningful spread across the axis)
• Independent of each other (not correlated)
• Measurable or assessable (not purely subjective)

Common high-value axis pairs:

Positioning process:

1. Select two axes based on the criteria above
2. Plot all identified competitors (direct + key indirect)
3. Identify white space (underserved positions)
4. Identify crowded zones (intense competition)
5. Assess focal company's current position and desired position

Step 6: Competitive Moat Analysis

Assess each moat type on a 0-5 scale (0 = none, 5 = extremely strong):

Overall moat strength: Sum of all scores. 0-10 = Weak, 11-20 = Moderate, 21-30 = Strong, 31-35 = Exceptional.

Step 7: Threat Assessment & Strategic Implications

For each competitor, assess:

1. Threat level: Critical / High / Medium / Low / Negligible
2. Time horizon: Immediate (0-6 mo), Near-term (6-18 mo), Medium-term (18-36 mo), Long-term (3+ yr)
3. Attack vector: Where and how they threaten you (price, product, market entry, customer poaching)
4. Recommended response: Defend, attack, ignore, partner, or acquire

Output Template

Competitive Analysis: [Focal Company] in [Market]

Date: [Date] | Prepared for: [Client/Project] | Scope: [Geography/Segment]

1. Competitive Arena Definition

• Market: [Precise market definition]
• Job-to-be-done: [Customer need being solved]
• Customer: [Target buyer profile]
• Geography: [Scope]

2. Competitor Map

3. Porter's Five Forces

4. Competitor Profiles

[Competitor 1 Name]

(Repeat for each top competitor)

5. Competitive Positioning Map

                    HIGH [Axis 2 Label]
                         │
          [Quadrant 2]   │   [Quadrant 1]
            ○ Comp C     │     ● FOCAL CO
                         │     ○ Comp A
     ─────────────────────┼──────────────────
                         │
          [Quadrant 3]   │   [Quadrant 4]
            ○ Comp D     │     ○ Comp B
                         │
                    LOW [Axis 2 Label]
    LOW [Axis 1 Label]       HIGH [Axis 1 Label]

Axis rationale:

• [Axis 1]: [Why this axis matters and how it was measured]
• [Axis 2]: [Why this axis matters and how it was measured]

White space identified: [Underserved positions and their opportunity]

6. Competitive Moat Scorecard

7. Threat Assessment Matrix

8. Strategic Implications

1. Defend: [What positions/advantages must be protected and how]
2. Attack: [Where competitive weakness creates opportunity]
3. Differentiate: [How to widen the gap on key buying criteria]
4. Monitor: [What signals to watch for competitive shifts]

Quality Checks

• Competitors include all three tiers: direct, indirect, and substitutes
• Porter's Five Forces scores are individually justified with specific evidence, not generic
• Positioning map axes are customer-relevant buying criteria, not internal metrics
• Positioning map axes are independent (not correlated)
• Moat analysis scores every moat type with specific evidence, not aspirational claims
• Competitor profiles include predicted next moves, not just historical description
• Threat assessment includes time horizon and specific attack vector for each competitor
• Strategic implications are actionable recommendations, not generic observations
• All competitor data cites sources (public filings, industry reports, press releases)
• Analysis addresses the specific strategic question stated in inputs
• White space on the positioning map is identified and evaluated for viability
• Response profiles distinguish between what competitors CAN do and what they are LIKELY to do