If you want your business to stand out, you need to understand who you’re competing against—and how. That’s where a competitor matrix comes in.
A competitor matrix helps you visually map out how your product, service, or brand compares to others in your market. It’s one of the most powerful tools for uncovering market opportunities, refining your value proposition, and making smarter decisions.
In a world where startups and small businesses face fierce competition, having a clear view of your landscape isn’t optional—it’s strategic.
At Charisol, we’ve seen firsthand how startups and small businesses unlock new growth simply by identifying where they stand and how they can differentiate effectively.
So, how do you build a competitor matrix that actually helps you compete smarter? Here are seven practical steps to get you started.
Step 1: Identify Your Key Competitors
Before you can compare, you need to know who to compare yourself with. Start by identifying both direct and indirect competitors:
- Direct competitors offer a similar product or service to the same audience.
- Indirect competitors may solve the same problem differently or serve a slightly different audience but still overlap with your goals.
Use tools like Google Search, Crunchbase, G2, and Capterra to find brands in your space. You can also look at your customers—ask them what other options they considered before choosing you.
At Charisol, we often help startups perform this step as part of their digital strategy workshops, ensuring they identify both visible and hidden competitors before product design begins.
Step 2: Define the Key Comparison Factors
What should you compare? The most useful competitor matrices focus on areas that affect customer choice and business success. Consider these categories:
- Product features and quality
- Pricing structure
- Customer support and experience
- Brand positioning and messaging
- Technology stack or innovation
- Market reach and target audience
- Design and usability
The goal is not to list everything your competitors do—it’s to focus on what matters most to your customers and your growth goals.
At Charisol, we guide founders in identifying these factors through user research and design discovery sessions. This ensures that every comparison is grounded in what real users care about, not assumptions.
Step 3: Gather Reliable Data
Now that you know who and what to compare, it’s time to collect data. The quality of your competitor matrix depends entirely on the accuracy of your information.
You can use:
- Competitor websites – Check product pages, pricing, and testimonials.
- Customer reviews – Explore what users praise or complain about on Google Reviews or social platforms.
- Social media – Observe engagement levels, tone, and brand personality.
- SEO and analytics tools like Ahrefs, SEMrush, or SimilarWeb to track traffic, rankings, and keywords.
You don’t need to gather every detail—just enough to see patterns and identify what gives your competitors an edge.
At Charisol, our product teams integrate this research early in the design phase. It helps clients make decisions based on insights, not assumptions—saving time and resources later in development.
Step 4: Create the Matrix
A competitor matrix is usually a table or grid that makes visual comparison easy. You can build it using a spreadsheet tool like Google Sheets or Excel, or with data visualization tools like Notion or Airtable.
Here’s a simple structure:
| Competitor | Pricing | Core Features | Target Market | Strengths | Weaknesses | Notes |
|---|---|---|---|---|---|---|
| Your Brand | $$ | Feature 1, 2 | SMEs | Strong UX | Limited reach | — |
| Competitor A | $$$ | Feature 1, 2, 3 | Startups | Strong marketing | Complex UI | — |
The goal is to see the gaps—where competitors excel and where they fall short. These gaps are often your biggest opportunities.
Step 5: Analyze the Results
Once you have your data organized, step back and look for patterns:
- Which competitor is leading, and why?
- Are there underserved customer needs?
- Is pricing influencing perception?
- Are your differentiators strong enough?
This stage turns data into strategy. You might discover, for instance, that your product’s usability is stronger but your messaging doesn’t highlight it. Or that a competitor dominates in price but struggles with customer support—an area you can capitalize on.
At Charisol, we help businesses interpret these insights through UX audits and growth strategy sessions, translating them into practical design and development roadmaps.
Step 6: Turn Insights Into Action
A competitor matrix is not just for observation—it’s for execution. Once you identify where you stand, it’s time to act.
Here are a few ways to use your findings:
- Refine your value proposition — Clarify what makes your solution unique.
- Enhance your product or service — Add or improve features that fill market gaps.
- Optimize your brand messaging — Emphasize your strengths in marketing.
- Adjust pricing or business models — Align with or strategically undercut competitors.
At Charisol, we believe insights are only powerful when they drive results. That’s why our product design and development process always starts with competitor and user research—so every decision aligns with real opportunities in the market.
Step 7: Keep It Updated
Your competitor matrix isn’t a one-time project—it’s a living document. The digital landscape changes fast: new competitors emerge, technologies evolve, and customer expectations shift.
Make it a habit to review and update your matrix every quarter or whenever you launch a new product or campaign.
At Charisol, we encourage startups and small businesses to build this into their workflow. When you understand your position in the market consistently, you can adapt quickly and stay ahead.
Why Building a Competitor Matrix Matters
Without a clear understanding of your competitive landscape, it’s easy to invest time and money in the wrong areas. A well-built competitor matrix helps you:
- See where you stand in your market.
- Spot new opportunities before others do.
- Differentiate effectively through design, product, and strategy.
- Communicate your strengths clearly to customers and investors.
For startups and small businesses, this kind of clarity is game-changing. It’s the foundation for better decisions, stronger branding, and scalable growth.
And when you’re ready to build or refine your product strategy, Charisol can help you move from insights to implementation—designing digital solutions that help your business grow with confidence.
FAQs
How often should I update my competitor matrix?
Ideally, every 3–6 months. Frequent updates keep your data relevant and help you track shifting trends and emerging players in your market.
What’s the difference between a SWOT analysis and a competitor matrix?
A SWOT analysis looks inward at your strengths, weaknesses, opportunities, and threats. A competitor matrix, on the other hand, looks outward—it focuses on comparing your business to others in the market. Both complement each other.
Can small businesses benefit from competitor matrices?
Absolutely. For startups and small businesses, understanding the competition is crucial. It helps you position yourself better and make informed product or marketing decisions without wasting resources.
Do I need expensive tools to create a competitor matrix?
No. You can build an effective one using Google Sheets or Excel. The real value lies in your research and analysis—not the tool itself.
Conclusion
A competitor matrix isn’t just another business document—it’s your roadmap to smarter decisions and sustainable growth. It helps you see your market clearly, understand your strengths, and identify where your next big opportunity lies.
If you’re building or scaling a startup and want to make sure your strategy is rooted in clarity and insight, Charisol can help you do exactly that.
So, here’s a question to reflect on: Do you really know how your business stacks up against the competition—or are you still guessing?