How to Write a Competitive Analysis (Step by Step, With an Example)

How do you write a competitive analysis? Pick 3-5 competitors your buyers actually compare you with. Profile each one (price, target customer, strengths, weaknesses), then put them side by side in a feature matrix and a positioning map. State where you win and why. End with 3-5 specific recommendations, because an analysis that does not change a decision is just a list of facts.

A competitive analysis is a decision document. Its job is to tell a founder, product lead, or sales team where to fight, where not to fight, and what to say when a buyer names a rival. This guide covers what to include, the section order, a step-by-step method, a worked example, and the mistakes that make most of these reports go unread.

If you want a finished layout to fill in, the competitive analysis report template has every section below already designed.

What to include in a competitive analysis

Most good competitive analyses share the same core parts. The depth changes with the audience, but the parts do not.

Section	What it answers
Executive summary	What is the market, where do we sit, and what is the biggest risk?
Competitor profiles	Who are they, what do they charge, who do they serve, how big a threat are they?
Feature comparison matrix	Who does what, side by side?
Positioning map	Where does each player sit on the two dimensions buyers care about most?
Our differentiation	What can we do that they cannot, or will not?
Battlecards	How does sales win a deal against each top rival?
Recommendations	What should we do next, in priority order?
Sources and date	Where did the data come from, and when does it go stale?

Our competitive analysis template follows this order. It opens with a cover and executive summary, then gives each competitor a profile card with a price range and a threat level (high, medium, or lower risk). After that come a feature matrix with full, partial, and no-support marks, a 2x2 positioning map, an "unfair advantages" section, two battlecards, and a closing page of strategic recommendations with a sources note.

Step-by-step: how to write one

1. Define the question

Write one sentence at the top of your notes: "This analysis helps us decide ___." Examples: which segment to target first, how to price a new plan, or how sales should handle a common objection. The question tells you which data matters and which you can skip.

2. Choose the right competitors

Pick 3-5. Include:

• Direct competitors — same product, same buyer.
• Indirect competitors — a different product that solves the same problem (a spreadsheet, an agency, a generalist tool).
• The status quo — "do nothing" or "keep using email" is often your biggest rival.

The best source is your own sales calls and lost deals. Ask: "What else did you look at?" The answers are your real competitor list, which is often different from the list in your head.

3. Collect the data

Use sources you can name: public pricing pages, product trials, help docs, changelogs, review sites, job postings, and customer interviews. Write the date next to every price. Prices and features change often, so an undated number is a risk.

4. Build the profiles

For each competitor, keep it to one card: price range, target customer, top 3 strengths, top 3 weaknesses, and a threat level. Be fair about strengths. If the report makes every rival look weak, readers stop trusting it.

5. Build the matrix and the map

The feature matrix lists 8-10 capabilities that buyers actually use to choose. Do not list 40 features. Mark each as full support, partial, or none.

For the positioning map, choose two axes that matter to buyers, such as "simple vs. complex" and "generic vs. specialist." Plot every player. If everyone sits in one corner, the empty corner may be your opportunity.

6. Write your differentiation and battlecards

State 2-3 advantages that are real today, not on the roadmap. Then write a battlecard for each top rival: their buyers' pain points on one side, why you win on the other. Sales teams use these in calls, so keep each point to one line.

7. End with recommendations

Give 3-5 actions, each with an owner or a clear next step. "Watch Competitor X" is weak. "Set up an alert for Competitor X's pricing page and review it monthly" is an action.

A worked example

The names and numbers below are invented for illustration.

Ridgeline Roasters sells coffee by subscription and wants to know whether to launch a cheaper plan. The question: "Should we add a lower-price tier, and who would it compete with?"

They pick three rivals from their lost-deal notes:

	Ridgeline (us)	BeanBox Co.	Hearth Coffee Club	Driftwood Roasting
Price per 12 oz bag	$19	$16	$22	$17
Roast-to-ship time	48 hours	7-10 days	72 hours	5 days
Single-origin options	12	4	15	6
Skip or pause anytime	Yes	Yes	Partial	Yes
Free shipping	Over $35	Always	Over $50	Over $40
Threat level	—	High	Medium	Medium

Their positioning map uses "price" on one axis and "freshness" on the other. BeanBox owns low price with slow shipping. Hearth owns premium freshness. The low-price, high-freshness corner is empty.

The recommendations page then reads:

1. Test a $16 "house blend" plan with the same 48-hour roast-to-ship promise. It targets BeanBox buyers who complain about stale beans.
2. Lead all ads with roast date, not origin count, because Hearth already wins on variety.
3. Add free shipping on all subscriptions over two bags to remove BeanBox's main advantage.
4. Review competitor pricing pages every quarter.

Note how each recommendation ties back to a cell in the matrix. That link is what makes the analysis useful.

Common mistakes

• Too many competitors. Ten shallow profiles are less useful than four deep ones.
• Feature dumps. A 40-row matrix hides the 5 rows that decide deals.
• No sources or dates. Readers cannot tell if a price is from last week or last year.
• Bias. If you never lose a row in the matrix, you are not being honest, and the reader knows it.
• No "so what." Every section should lead to the recommendations. If a section does not, cut it.
• Write once, never update. Markets move. Put a review date on the cover.

How long should a competitive analysis be?

For an internal team, 6-12 pages is common: one page each for the summary, matrix, map, and recommendations, plus a profile page or card per competitor and a page per battlecard. For a startup pitch or board update, a single-page summary with the matrix may be enough. For client work, consultants often go longer and add market sizing and methodology. Our consulting report guide covers that format.

Format it as a PDF so tables and the positioning map stay in place when people forward it. Mark it "confidential" if it includes customer interview notes. For more on layout that busy readers can scan, see what "client-ready" means for a PDF.

Related documents

A competitive analysis often feeds other documents. After it, teams usually write a strategy roadmap to turn the recommendations into a plan, or use a vendor comparison when they are the buyer rather than the seller. You can browse all strategy and consulting templates for the rest of the set.

Write it with BuildPDFs

BuildPDFs turns a short description into a designed document. Describe your market, your product, and the competitors you want to cover. The AI drafts the full analysis on this competitor report layout, including the profiles, matrix, map, battlecards, and recommendations. You then edit any section in plain language and export a print-ready PDF. To start from a blank prompt instead, use the AI document generator.

FAQ

What are the main types of competitive analysis?

Common frameworks include a feature comparison matrix, a positioning map, a SWOT analysis, and Porter's Five Forces. Most practical reports combine a matrix and a map with per-competitor strengths and weaknesses, which covers the same ground as a SWOT for each rival.

How often should you update a competitive analysis?

Many teams review it every quarter. In fast-moving markets, check direct competitors' pricing and release notes monthly and update the full report each quarter.

Where do you find competitor information?

Use public and ethical sources: pricing pages, free trials, product docs, changelogs, review sites, job postings, press releases, and conversations with your own customers and lost prospects.

What is the difference between a competitive analysis and a SWOT analysis?

A SWOT looks at one company: its strengths, weaknesses, opportunities, and threats. A competitive analysis compares several companies side by side and focuses on where you win or lose against each one.