<!-- PM-Skills | https://github.com/product-on-purpose/pm-skills | Apache 2.0 -->

Competitive Analysis

A competitive analysis provides structured insight into the competitive landscape, helping product teams understand where they stand relative to alternatives and identify opportunities for differentiation. Rather than exhaustively cataloging every competitor, an effective analysis focuses on actionable insights that inform product strategy.

When to Use

• Before entering a new market or launching a new product
• When planning differentiation strategy for an existing product
• During quarterly or annual strategic planning reviews
• When evaluating build vs. buy decisions
• After losing deals to understand competitive positioning
• When onboarding new product team members to the market context

Instructions

When asked to create a competitive analysis, follow these steps:

1. Define the Scope Clarify what you're analyzing: a specific feature area, overall product positioning, or pricing strategy. Identify 3-5 key competitors—direct competitors (same solution), indirect competitors (different solution to same problem), and potential disruptors.

2. Gather Intelligence Research each competitor through public sources: websites, pricing pages, G2/Capterra reviews, press releases, job postings, and customer testimonials. Note what you can verify vs. what you're inferring.

3. Build the Feature Matrix Create a comparison grid of key capabilities. Focus on features that matter to your target customers, not exhaustive checklists. Use consistent ratings (e.g., Full, Partial, None, Unknown).

4. Analyze Positioning Map competitors on a 2x2 positioning matrix using dimensions relevant to your market (e.g., price vs. features, ease of use vs. power, SMB vs. enterprise). Identify white space opportunities.

5. Assess Strengths and Weaknesses For each competitor, document genuine strengths (what they do better than you) and weaknesses (where they fall short). Avoid dismissing competitors—respect drives better strategy.

6. Identify Strategic Implications Translate observations into actionable recommendations: where to compete head-on, where to differentiate, what messaging to emphasize, and what gaps represent opportunities.

7. Note Confidence Levels Mark which conclusions are based on verified data vs. inference. Competitive intelligence has varying reliability—be honest about uncertainty.

Output Format

Use the template in

references/TEMPLATE.md

to structure the output.

Quality Checklist

Before finalizing, verify:

• Scope is clearly defined (what market, segment, use case)
• 3-5 competitors are analyzed, including direct and indirect
• Feature comparison focuses on customer-relevant capabilities
• Positioning map uses meaningful, differentiated dimensions
• Strengths acknowledge where competitors genuinely excel
• Recommendations are specific and actionable
• Sources and confidence levels are documented

Examples

See

references/EXAMPLE.md

for a completed example.