BO
Analysis8 min read

Competitive Analysis Framework

A systematic approach to analysing competitors before entering a market. Learn to identify weaknesses, differentiation opportunities, and strategic gaps.

By BusinessOpportunity.ai Research Team

Understanding your competition is not about copying what works—it is about finding what is missing. A thorough competitive analysis reveals opportunities that others overlook and helps you position for success.

The Competitive Analysis Canvas

We recommend analysing competitors across six dimensions:

1. Market Position

Questions to answer:

  • Who are the market leaders?
  • What market share do they hold?
  • How are they perceived by customers?
  • What is their positioning strategy?

Data sources:

  • Industry reports
  • Review platforms
  • Social media mentions
  • Search visibility

2. Product/Service Offering

Questions to answer:

  • What features do they offer?
  • What is their pricing structure?
  • What is missing from their offering?
  • How has their product evolved?

Data sources:

  • Feature comparison matrices
  • Pricing pages
  • Product roadmaps (if public)
  • Customer reviews (complaints reveal gaps)

3. Marketing and Acquisition

Questions to answer:

  • Where do they acquire customers?
  • What is their content strategy?
  • How much are they spending on adverts?
  • What is their messaging focus?

Data sources:

  • SEMrush/Ahrefs for search strategy
  • Meta Ad Library for creative
  • LinkedIn for B2B targeting
  • Content analysis

4. Customer Experience

Questions to answer:

  • What do customers love?
  • What do customers hate?
  • How responsive is support?
  • What is the onboarding like?

Data sources:

  • Review sites (G2, Capterra, Trustpilot)
  • Social media complaints
  • Mystery shopping
  • Customer interviews

5. Business Model

Questions to answer:

  • How do they monetise?
  • What is their pricing strategy?
  • What is their cost structure?
  • Are they profitable?

Data sources:

  • Pricing pages
  • Financial reports (if public)
  • Industry benchmarks
  • Investor presentations

6. Operational Capabilities

Questions to answer:

  • What is their team size?
  • What technology do they use?
  • What is their geographic reach?
  • How fast do they ship?

Data sources:

  • LinkedIn company pages
  • Job postings
  • BuiltWith/Wappalyzer
  • Press releases

The Competitor Matrix

Create a comparison table:

| Factor | Competitor A | Competitor B | Competitor C | Your Opportunity | |--------|-------------|-------------|-------------|------------------| | Target customer | SME | Enterprise | Mid-market | Underserved segment? | | Key strength | Features | Support | Price | What can you beat? | | Key weakness | Complexity | Slow | Basic | What can you exploit? | | Pricing | £99/mo | £499/mo | £29/mo | Price gap? | | Reviews | 4.2/5 | 4.5/5 | 3.8/5 | Service opportunity? |

Finding Your Competitive Advantage

Types of Competitive Advantage

Cost leadership:

  • Lower operational costs
  • More efficient processes
  • Better technology

Differentiation:

  • Unique features
  • Superior quality
  • Better experience

Focus:

  • Niche specialisation
  • Geographic focus
  • Customer segment focus

Where to Find Gaps

Underserved segments: Look for customer groups that existing players ignore or serve poorly.

Emerging needs: Identify problems that are becoming more important but are not well-addressed.

Experience gaps: Find where competitors deliver poor experiences despite good products.

Price gaps: Spot opportunities for premium or budget positioning.

Geographic gaps: Look for markets where competitors are weak or absent.

Red Flags in Competitive Analysis

1. No Competition

If no one is serving this market, ask why. Often there is no demand.

2. Dominant Player with 80%+ Share

Very hard to compete unless you have significant advantages or they are vulnerable.

3. Well-Funded Startups

Recent funding suggests resources and urgency. Moving fast against you.

4. Commoditisation

If all competitors look the same, winning requires operational excellence or dramatic differentiation.

Key Takeaways

  1. Competition validates demand—do not fear it
  2. Customer complaints are your opportunity map
  3. Position against weaknesses, not strengths
  4. Niche beats broad in crowded markets
  5. Monitor continuously, not just at entry

Use our industries pages for competitive density data, and explore our Market Saturation Checker for quantitative competitive analysis.