Do you really know your competition? Like, really? Do you know which ones could become serious competitors for you and which ones pose no threat? Do you know why customers prefer buying from them instead of you? Do you know what they’re doing better than you?
I’m going to go out on a limb here and say: “No.”
Sure, you can probably think of 2–3 companies with offerings similar to yours. And yes, you likely know exactly why you wouldn’t shop there—but be honest: is your knowledge based on personal assumptions or actual data?
In my experience, many small businesses and self-employed professionals often skip in-depth competitor analysis. There are many reasons for this. On the one hand, people often simply don’t know how to conduct such an analysis. On the other hand, they’re unsure what to do with the information once they have it.
Competitors are often seen as the enemy. But in reality, they present a huge opportunity to move your business forward and improve.
Knowing your competition well will benefit your business—especially your marketing. In this article, you’ll learn how competitor analysis can help you optimize and strengthen your marketing strategy.
Positioning & Strategy
Marketing Strategy
Important to know: Not every competitor in your field is actually your direct competition. If you’re a wedding photographer, then a pet photographer is technically a competitor because you both offer photography—but you’re targeting completely different audiences. A pet photographer is not your direct competitor.
So, always ask yourself: Who is your competitor targeting and how do they want to be perceived by that audience? The answers are crucial for your own positioning and strategic direction.
What’s Working—And What’s Not?
Communication Strategy
The way your competitors communicate with their customers reveals a lot about their brand positioning. When you study their ads or content, you’ll quickly discover how they approach messaging: what they claim to do differently or better, what product benefits they highlight, what values they emphasize, and how they package their message in tone and language.
You’ll also identify which marketing assets work really well—and which ones fall flat. This helps you figure out how your audience wants to be addressed and what messaging might not resonate.
Want an example? On my blog, I refer to my readers as “babes” because most of them are proud to be women and entrepreneurs. But I’ve noticed that this turns some people off—they prefer being seen as business owners without having gender emphasized. This creates a communication gap that you could strategically leverage for your own positioning.
New Here?
Product Strategy
“That’s how it’s always been done—it’ll keep working in the future.” We’ve all heard that one before. And sure, maybe it’s true—until someone comes along and does it better. Or maybe you just haven’t noticed the change yet. If you don’t keep tabs on your competitors, you could be overtaken without realizing it.
Ask yourself: How are competing products received by customers? What kind of image do they project? How do they differ from yours? What’s better—or worse?
Competitor analysis also gives you a glimpse into the future: Are your competitors working on new products?
If Not Here, Then Where?
Distribution Strategy
You’re currently selling only through your own website. Things are going okay—but of course, there’s room to grow. Maybe sales are slow because your site is still under construction. Either way, your distribution strategy could benefit from one key question: Where do your competitors sell their products and services?
If you know which sales channels are working well for them, you can use the same ones. You might uncover untapped platforms that you’ve overlooked—but others are already using successfully.
Don’t just think of the usual suspects like Etsy. Also consider partnerships, industry directories, trade shows, etc. There are many roads to Rome—and just as many ways to reach your potential customers.
Let's talk about money, babe
Pricing Strategy
You keep hearing: “I can get the same thing for 10€ less at XYZ!” So your customers drop off and buy from someone else. Before you give up on those customers—or worse, lower your prices blindly—do a competitor analysis.
If you find out why your competitor can offer lower prices, you can adapt your marketing accordingly.
Maybe your ingredients are higher quality, which drives up your costs—and justifies your price point. Then you should absolutely communicate that clearly.
Who knows—maybe you’re charging far less than the market would bear.
You can see how regular competitor analysis gives you valuable insights into the market and lets you peek behind the curtain of your competitors’ success. By keeping a close eye on them, you’ll start to recognize the key levers of success—not just for them, but potentially for yourself.
This allows you to align your marketing efforts much more effectively. Of course, there’s no one-size-fits-all formula for success. You’ll still need to test and experiment. But why start from scratch?
