Competitive Analysis
A competitive analysis provides structured insight into the competitive landscape, helping product teams understand where they stand relative to alternatives and identify opportunities for differentiation. Rather than exhaustively cataloging every competitor, an effective analysis focuses on actionable insights that inform product strategy.
When to Use
- Before entering a new market or launching a new product
- When planning differentiation strategy for an existing product
- During quarterly or annual strategic planning reviews
- When evaluating build vs. buy decisions
- After losing deals to understand competitive positioning
- When onboarding new product team members to the market context
When NOT to Use
- You need market size rather than competitor positioning -> use
discover-market-sizing
- You are stress-testing strategic differentiation across the whole business model -> use
foundation-lean-canvas, or tool-foundation-sprint-differentiation inside a Foundation Sprint
- You want to understand why customers switch products -> use
define-jtbd-canvas; it examines competing solutions through the job lens
- The landscape is already mapped and you need the problem framed -> use
define-problem-statement
Instructions
When asked to create a competitive analysis, follow these steps:
Define the Scope
Clarify what you're analyzing: a specific feature area, overall product positioning, or pricing strategy. Identify 3-5 key competitors: direct competitors (same solution), indirect competitors (different solution to same problem), and potential disruptors.
Gather Intelligence
Research each competitor through public sources: websites, pricing pages, G2/Capterra reviews, press releases, job postings, and customer testimonials. Note what you can verify vs. what you're inferring.
Build the Feature Matrix
Create a comparison grid of key capabilities. Focus on features that matter to your target customers, not exhaustive checklists. Use consistent ratings (e.g., Full, Partial, None, Unknown).
Analyze Positioning
Map competitors on a 2x2 positioning matrix using dimensions relevant to your market (e.g., price vs. features, ease of use vs. power, SMB vs. enterprise). Identify white space opportunities.
Assess Strengths and Weaknesses
For each competitor, document genuine strengths (what they do better than you) and weaknesses (where they fall short). Avoid dismissing competitors. Respect drives better strategy.
Identify Strategic Implications
Translate observations into actionable recommendations: where to compete head-on, where to differentiate, what messaging to emphasize, and what gaps represent opportunities.
Note Confidence Levels
Mark which conclusions are based on verified data vs. inference. Competitive intelligence has varying reliability. Be honest about uncertainty.
Output Format
Use the template in references/TEMPLATE.md to structure the output. A complete analysis fills every template section: Overview; Market Context; Competitors Analyzed; Feature Comparison Matrix; Pricing Comparison; Positioning Map; Competitor Deep Dives; Competitive Gaps and Opportunities; Strategic Recommendations; Sources and Confidence; and Next Steps.
Quality Checklist
Before finalizing, verify:
Examples
See references/EXAMPLE.md for a completed example.
1---2name: discover-competitive-analysis3description: Creates a structured competitive analysis comparing features, pricing, and positioning across 3-5 direct and indirect competitors, with a 2x2 map and actionable strategic recommendations. Use before entering a market, planning differentiation, or after losing deals. For market size rather than competitor positioning, use discover-market-sizing instead.4license: Apache-2.05---6<!-- PM-Skills | https://github.com/product-on-purpose/pm-skills | Apache 2.0 -->
7# Competitive Analysis
8
9A competitive analysis provides structured insight into the competitive landscape, helping product teams understand where they stand relative to alternatives and identify opportunities for differentiation. Rather than exhaustively cataloging every competitor, an effective analysis focuses on actionable insights that inform product strategy.
10
11## When to Use
12
13- Before entering a new market or launching a new product
14- When planning differentiation strategy for an existing product
15- During quarterly or annual strategic planning reviews
16- When evaluating build vs. buy decisions
17- After losing deals to understand competitive positioning
18- When onboarding new product team members to the market context
19
20## When NOT to Use
21
22- You need market size rather than competitor positioning -> use `discover-market-sizing`
23- You are stress-testing strategic differentiation across the whole business model -> use `foundation-lean-canvas`, or `tool-foundation-sprint-differentiation` inside a Foundation Sprint
24- You want to understand why customers switch products -> use `define-jtbd-canvas`; it examines competing solutions through the job lens
25- The landscape is already mapped and you need the problem framed -> use `define-problem-statement`
26
27## Instructions
28
29When asked to create a competitive analysis, follow these steps:
30
311. **Define the Scope**
32 Clarify what you're analyzing: a specific feature area, overall product positioning, or pricing strategy. Identify 3-5 key competitors: direct competitors (same solution), indirect competitors (different solution to same problem), and potential disruptors.
33
342. **Gather Intelligence**
35 Research each competitor through public sources: websites, pricing pages, G2/Capterra reviews, press releases, job postings, and customer testimonials. Note what you can verify vs. what you're inferring.
36
373. **Build the Feature Matrix**
38 Create a comparison grid of key capabilities. Focus on features that matter to your target customers, not exhaustive checklists. Use consistent ratings (e.g., Full, Partial, None, Unknown).
39
404. **Analyze Positioning**
41 Map competitors on a 2x2 positioning matrix using dimensions relevant to your market (e.g., price vs. features, ease of use vs. power, SMB vs. enterprise). Identify white space opportunities.
42
435. **Assess Strengths and Weaknesses**
44 For each competitor, document genuine strengths (what they do better than you) and weaknesses (where they fall short). Avoid dismissing competitors. Respect drives better strategy.
45
466. **Identify Strategic Implications**
47 Translate observations into actionable recommendations: where to compete head-on, where to differentiate, what messaging to emphasize, and what gaps represent opportunities.
48
497. **Note Confidence Levels**
50 Mark which conclusions are based on verified data vs. inference. Competitive intelligence has varying reliability. Be honest about uncertainty.
51
52## Output Format
53
54Use the template in `references/TEMPLATE.md` to structure the output. A complete analysis fills every template section: Overview; Market Context; Competitors Analyzed; Feature Comparison Matrix; Pricing Comparison; Positioning Map; Competitor Deep Dives; Competitive Gaps and Opportunities; Strategic Recommendations; Sources and Confidence; and Next Steps.
55
56## Quality Checklist
57
58Before finalizing, verify:
59
60- [ ] Scope is clearly defined (what market, segment, use case)
61- [ ] 3-5 competitors are analyzed, including direct and indirect
62- [ ] Feature comparison focuses on customer-relevant capabilities
63- [ ] Positioning map uses meaningful, differentiated dimensions
64- [ ] Strengths acknowledge where competitors genuinely excel
65- [ ] Recommendations are specific and actionable
66- [ ] Sources and confidence levels are documented
67
68## Examples
69
70See `references/EXAMPLE.md` for a completed example.
product-on-purpose