Most competitor analyses compare what rivals sell. Few show where buyers are moving.
What is a competitor analysis?
A competitor analysis is a structured view of the companies that compete for the same buyers. It supports three choices: where to compete, how to differ and what to expect next. For midsize consumer goods brands, manufacturers and retailers, those choices set where people, budget and capacity go.
A good one predicts behaviour. A weak one lists features. Your rivals' pricing pages already tell you the features. They will not tell you what happens next.
How do you do a competitor analysis?
- Define the decision. A launch, a price change or a market entry each need different evidence.
- Map all competitors. Include direct rivals, substitutes and ways people solve the need without buying.
- Profile each one. Offer, price, channels, positioning, recent moves and hiring.
- Read their likely response. Ask what they will do if you act.
- Measure the demand shift. See who is gaining attention and who is losing it.
- Turn it into choices. Name what you will do, stop and watch.
Your real competitor is whatever people consider instead of you. That list is rarely the one in your sales deck.
How do you predict what a competitor will do?
Michael Porter gave the classic answer in 1980. Look at four things: future goals, current strategy, assumptions and capabilities. Together they form a response profile.
Goals. What are they promising investors or owners? Strategy. Where are they putting money now?
Assumptions. What do they believe about the market that may be wrong? Capabilities. What could they do fast, and what would take years?
Then test your own plan against it. If a likely response cancels your move within a year, the move is not strong enough alone.
Five Forces explains the pressure in an industry. A response profile explains one named rival. You need the first to choose a market and the second to act in it.
What should a competitor analysis template include?
| Field | Where to find it | Why it matters |
|---|---|---|
| Offer and price | Sites, marketplaces | Your direct comparison |
| Positioning | Messaging, ads | The space they claim |
| Recent moves | News, filings | Their current direction |
| Hiring | Job listings | Where they invest next |
| Customer view | Reviews, forums | Weaknesses to use |
| Demand trend | Search, Social, AI | Who is gaining ground |
The last row is the one most templates skip. Everything above it shows what a rival does. Demand development shows if buyers respond, before it reaches sales.
How do you measure competitor demand?
Start with share of search: your brand's share of all branded searches in a category. It is cheap, public and available for most categories. Binet found it leads market share in the categories he tested. Treat it as an indicator of brand position, not as market share or sales.
It works best in categories with clear brand searches. It says little about non-branded demand, where people search for a need and not yet a name.
Those are often the moments that decide the shortlist. AI platforms add a further gap, because a growing share of orientation happens where branded search cannot see it.
Then go beyond brand names. Watch which needs and attributes grow, and which rivals own them. Competitor Intelligence, a perspective within Demand Intelligence, tracks that position over time.
Frequently asked questions
How often should you do a competitor analysis?
Do a full analysis once a year or before a major decision. Track the key signals, such as demand and pricing, every month.
What is the difference between a competitor analysis and Competitor Intelligence?
An analysis is a snapshot made for a decision. Competitor Intelligence is the ongoing process that keeps that picture current.
How many competitors should you analyse?
Three to five in depth, plus a wider list you monitor. Depth beats coverage when the goal is to predict behaviour.