competitive-analysis

name

Competitive Analysis

description

USE THIS SKILL when the user asks to analyze competitors, map the competitive landscape, assess competitive threats, build a competitor profile, evaluate competitive positioning, identify competitive advantages or moats, or compare companies in an industry. Trigger terms: "competitive analysis", "competitor", "competitive landscape", "Porter's Five Forces", "competitive moat", "positioning map", "competitive advantage", "threat assessment", "rival", "market share", "competitive benchmark", "2x2 matrix", "who competes with".

Competitive Analysis

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

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Required Inputs

Input	Description	Required?
Focal company / product	The company or product being analyzed	Yes
Industry / market	The competitive arena being mapped	Yes
Known competitors	Any competitors already identified	If available
Key buying criteria	What customers value most	If available
Geographic scope	Markets being analyzed	Yes
Strategic question	What decision this analysis informs	Recommended
Revenue/scale data	Size metrics for focal company	For positioning
Time horizon	Current snapshot vs. forward-looking	Yes

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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:

Tier	Definition	Identification Method
Direct competitors	Same product, same customer, same use case	Industry reports, customer mentions, search overlap
Indirect competitors	Different product, same customer need	Job-to-be-done analysis, customer interviews
Substitutes / alternatives	Different approach to same outcome (including "do nothing")	Buyer journey mapping, budget alternatives

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:

Axis Pair	Best for
Price vs. Product breadth	Understanding market segments
Innovation speed vs. Scale/reliability	Tech markets
Customization vs. Ease of use	SaaS/platform markets
Price vs. Quality/performance	Consumer markets
Specialization vs. Geographic reach	Services markets

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):

Moat Type	Assessment Criteria	Score Guide
Network effects	Does each additional user make the product more valuable? Direct or indirect?	0 = no network, 5 = winner-take-all dynamics
Switching costs	How painful is it for customers to leave? Data lock-in, workflow integration, retraining?	0 = trivial to switch, 5 = switching is virtually impossible
Brand	Does the brand command a premium? Top-of-mind awareness? Trust advantage?	0 = commodity, 5 = brand IS the category
Scale economies	Does the cost structure improve with scale? Unit economics advantage?	0 = no scale advantage, 5 = 10x cost advantage at scale
IP / proprietary tech	Patents, trade secrets, proprietary data, unique algorithms?	0 = no IP, 5 = foundational patents / irreplicable data
Regulatory capture	Licenses, certifications, compliance barriers that favor incumbents?	0 = open market, 5 = regulatory monopoly
Counter-positioning	Incumbent cannot adopt your model without damaging their core business?	0 = easily copied, 5 = fundamental business model conflict

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

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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

Competitor	Type	Est. Revenue	Employees	Customers	HQ	Key Differentiator
[Competitor 1]	Direct	$[X]M	[N]	[N]	[City]	[One-line differentiator]
[Competitor 2]	Direct	$[X]M	[N]	[N]	[City]	[One-line differentiator]
[Competitor 3]	Indirect	$[X]M	[N]	[N]	[City]	[One-line differentiator]
[Competitor 4]	Substitute	$[X]M	[N]	[N]	[City]	[One-line differentiator]

3. Porter's Five Forces

Force	Score (1-5)	Key Drivers	Implication
Threat of New Entrants	[X]/5	[Top 2 drivers]	[Strategic implication]
Supplier Power	[X]/5	[Top 2 drivers]	[Strategic implication]
Buyer Power	[X]/5	[Top 2 drivers]	[Strategic implication]
Threat of Substitutes	[X]/5	[Top 2 drivers]	[Strategic implication]
Competitive Rivalry	[X]/5	[Top 2 drivers]	[Strategic implication]
Industry Attractiveness	[X]/5		[Attractive / Neutral / Unattractive]

4. Competitor Profiles

[Competitor 1 Name]

Dimension	Assessment
Strategy	[Cost leader / Differentiator / Niche / Disruptor]
Value proposition	"[Their stated value prop]"
Target customer	[Their ICP]
Revenue model	[How they monetize]
Strengths	[Top 2-3 strengths]
Weaknesses	[Top 2-3 weaknesses]
Recent moves	[Last 3 strategic actions]
Predicted next moves	[2-3 likely actions]
Response profile	[Aggressive / Defensive / Passive]

(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

Moat Type	Focal Co.	Comp 1	Comp 2	Comp 3
Network effects	[0-5]	[0-5]	[0-5]	[0-5]
Switching costs	[0-5]	[0-5]	[0-5]	[0-5]
Brand	[0-5]	[0-5]	[0-5]	[0-5]
Scale economies	[0-5]	[0-5]	[0-5]	[0-5]
IP / proprietary tech	[0-5]	[0-5]	[0-5]	[0-5]
Regulatory capture	[0-5]	[0-5]	[0-5]	[0-5]
Counter-positioning	[0-5]	[0-5]	[0-5]	[0-5]
Total Moat Score	[X]/35	[X]/35	[X]/35	[X]/35
Moat Strength	[Weak/Mod/Strong/Exc]	[W/M/S/E]	[W/M/S/E]	[W/M/S/E]

7. Threat Assessment Matrix

Competitor	Threat Level	Time Horizon	Primary Attack Vector	Recommended Response
[Comp 1]	[Critical/High/Med/Low]	[Immediate/Near/Med/Long]	[Price/Product/Market/Customer]	[Defend/Attack/Ignore/Partner/Acquire]
[Comp 2]	[Level]	[Horizon]	[Vector]	[Response]
[Comp 3]	[Level]	[Horizon]	[Vector]	[Response]

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]

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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