Launching a startup is exciting — but it also means entering a market that already has players fighting for attention, customers, and revenue. Knowing who those players are, what they’re doing right, and where they’re falling short can give your business the edge it needs. That’s where competitor analysis comes in.
Competitor analysis helps you understand the landscape you’re stepping into. It reveals opportunities, highlights threats, and helps you make informed decisions about your product, pricing, marketing, and positioning. Done right, it’s one of the smartest early steps you can take to set your startup up for success.
At Charisol, we’ve worked with many startups in the UK, US, Canada, and Nigeria — and we’ve seen how valuable competitor insights can be in shaping winning digital products and strategies.
So, let’s break down how to conduct a competitor analysis step-by-step, in a way that’s practical, clear, and budget-friendly.
Step 1: Identify Your Real Competitors
Start by figuring out who your competitors actually are. It’s not just the big, obvious brands you see on social media. Your real competitors are those solving the same problem as you — for the same type of audience.
You can group them into three types:
- Direct competitors: Businesses offering a similar product or service to the same audience (for example, Uber vs. Bolt).
- Indirect competitors: Businesses offering alternative solutions to the same problem (for instance, Uber vs. public transport).
- Potential competitors: Emerging businesses or new players that could enter your space soon.
How to find them:
- Google the keywords your target audience might use (e.g., “affordable project management tools” or “best meal prep app”).
- Explore social media — see which brands are active in your niche.
- Use review platforms like G2, Capterra, or Trustpilot.
- Ask your potential customers what tools or services they currently use.
By mapping these out, you’ll have a clear picture of the competitive environment you’re in.
Step 2: Analyze Their Products or Services
Once you know your competitors, dig deeper into what they’re offering. Look beyond the surface — study their product features, pricing, and user experience.
Ask yourself:
- What problems are they solving effectively?
- What pain points do their users still complain about?
- How easy is their product to use?
- What features do they promote most often?
You can gather this information from their website, app store reviews, social media comments, or customer testimonials.
At Charisol, we help startups go one step further by turning these insights into design and development opportunities. For instance, if users love a competitor’s tool but constantly complain about its complexity, that’s your chance to build something more intuitive.
Step 3: Study Their Marketing Strategy
Marketing often reveals what a competitor values most — and how they connect with customers.
Here’s what to look for:
- Website and SEO: What keywords are they ranking for? Use free tools like Ubersuggest or Ahrefs to check.
- Social media: What platforms are they most active on? What type of content gets the most engagement?
- Paid ads: Check Facebook Ad Library or Google Ads transparency reports to see their campaigns.
- Brand voice and visuals: How do they communicate? What’s their tone, imagery, and overall branding style?
Studying these helps you find the gaps — maybe your competitors focus heavily on LinkedIn but ignore YouTube or community-based marketing. That’s a space you can own.
Step 4: Evaluate Their Customer Experience
Customer experience is where many startups stand out. Even with similar products, businesses win by offering better service, support, and usability.
Here’s how to evaluate it:
- Customer reviews: Read what users say on social media, forums, and review sites.
- Support channels: Do they offer live chat, help centers, or email support? How quickly do they respond?
- User onboarding: Sign up for their service and track how they guide new users.
As a design and development agency, Charisol places strong emphasis on user-first design. We believe that building a digital product isn’t just about functionality — it’s about making users feel seen, understood, and supported.
When you conduct competitor analysis with that mindset, you’ll not only understand the competition better — you’ll also spot ways to create a stronger emotional connection with your customers.
Step 5: Examine Their Pricing and Value Proposition
Pricing plays a huge role in positioning your startup. You don’t have to be the cheapest — you just need to offer the right value for your audience.
Create a pricing comparison table with columns for:
- Competitor name
- Pricing tiers
- Features per plan
- Unique selling points
Then ask:
- What makes each competitor’s pricing model appealing?
- Where can you offer more value (e.g., better customer support, faster delivery, or unique features)?
- Are there opportunities for flexible payment options or free trials?
If most competitors are charging premium rates, there might be an opening for an affordable or pay-as-you-go model. Conversely, if everyone’s undercharging, there could be room for a high-value, premium service.
Step 6: Identify Their Strengths and Weaknesses
Now that you’ve gathered enough data, summarize it. Create a competitor SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for each major competitor.
Example:
| Competitor | Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|---|
| Competitor A | Great brand reputation, strong SEO | Poor mobile experience | Build a better app | Their loyal user base |
| Competitor B | Affordable pricing | Weak customer support | Offer premium support | Rapid growth potential |
This gives you a clear, visual overview of where you can compete and win.
Step 7: Turn Insights Into Strategy
The final step — and the most important — is turning all this information into action.
Use what you’ve learned to:
- Define your unique value proposition (UVP) — what makes you stand out.
- Adjust your pricing or features to fill the gaps in the market.
- Improve your marketing and positioning based on customer needs.
- Prioritize user experience and design choices that competitors overlook.
At Charisol, this is where we often come in to help startups translate these findings into digital solutions that actually move the needle — from redesigning user interfaces to building fully customized platforms that align with what users truly want.
You can get started here: https://charisol.io/get-started/.
Common FAQs About Competitor Analysis
How often should startups do competitor analysis?
Ideally, at least once every 6 months. Markets change quickly, and staying updated ensures you adapt before you’re left behind.
What if I don’t have access to paid tools?
That’s fine. Many free tools like Google Alerts, Ubersuggest, and SimilarWeb can provide enough insights to get started.
Should I copy what competitors are doing?
No. The goal isn’t to imitate — it’s to differentiate. Learn from what’s working for them, then use your creativity and customer insights to do it better.
How can I make sense of all the data I collect?
Organize your findings in a spreadsheet or use simple templates. Charisol often helps startups analyze this data visually, making it easier to act on insights without feeling overwhelmed.
Final Thoughts
Competitor analysis isn’t about obsession — it’s about understanding. It helps you see the bigger picture, spot opportunities others miss, and build a product that truly fits your audience.
At Charisol, we’ve seen firsthand how clarity about the competition empowers startups to make smarter design and development decisions. By combining data with empathy and innovation, you can carve out your unique place in the market.
Ready to turn your insights into a product users will love?
Start your project with Charisol today.
What’s one competitor insight you think could change how you build or market your product?