My 6-Question Competitive Analysis Template That Product Teams Actually Use

In the fast-paced startup ecosystem, keeping tabs on your competitors is more than just a nice-to-have – it's a necessity. As a product marketer, I've seen firsthand how a well-executed competitive analysis can inform everything from product roadmaps to messaging strategies. However, I've also witnessed countless hours wasted on analyses that lack structure, focus, and actionable insights.

Over the years, I've refined my approach to competitive analysis, distilling it down to a simple yet powerful 6-question framework. This template has proven invaluable in helping product teams understand their competitive landscape, identify opportunities, and stay one step ahead.

The 6-Question Competitive Analysis Template

1. Who are our direct competitors?

   This may seem like a no-brainer, but it's crucial to clearly define your direct competitors – those offering similar products or services to the same target market. Don't get sidetracked by tangential players or overly broad categorizations. Stay laser-focused on the companies that pose the most immediate threat.

2. What are their key strengths and weaknesses?

   Conduct a thorough SWOT analysis for each direct competitor, examining their strengths, weaknesses, opportunities, and threats. This exercise will reveal potential gaps in the market that your product could fill, as well as areas where you may need to bolster your offering or messaging.

3. How do their products compare to ours?

   It's tempting to view your product through rose-colored glasses, but a competitive analysis demands objectivity. Meticulously compare your product's features, pricing, and overall value proposition to those of your competitors. Think of this as a gap analysis – where do you excel, and where do you fall short?

4. What's their go-to-market strategy?

   Understanding how your competitors position, package, and sell their products is just as important as understanding the products themselves. Analyze their messaging, marketing channels, sales tactics, and customer support strategies. This insight can inform your own go-to-market approach and help you differentiate your offering.

5. How are they perceived in the market?

   Perception is reality, especially in the minds of customers and prospects. Assess how your competitors are viewed in terms of brand reputation, thought leadership, customer satisfaction, and overall mindshare. This can reveal opportunities to reframe your messaging or double down on areas where you have a competitive advantage.

6. What's their long-term strategy?

   Competitive analysis isn't just about the here and now – it's about anticipating future moves. Examine your competitors' product roadmaps, funding situations, partnerships, and overall strategic direction. This forward-looking perspective can help you stay ahead of the curve and proactively adapt your strategy.

Putting It Into Practice

While this 6-question framework provides a solid structure, the real value lies in how you execute the analysis. I've found that involving cross-functional stakeholders – from product management to sales to customer success – yields the richest insights. Additionally, treating competitive analysis as an ongoing process, rather than a one-time event, ensures that your team stays agile and responsive.

Ultimately, the goal of a competitive analysis isn't to obsess over your rivals – it's to gain a deeper understanding of your own product's strengths, weaknesses, and market positioning. By answering these six questions thoroughly and objectively, you'll be better equipped to make informed decisions, differentiate your offering, and maintain a sustainable competitive advantage.