Every successful business has one thing in common — clarity about where they stand in the market and how they compare to competitors. That clarity doesn’t happen by chance; it’s built through a tool called a competitive positioning map.
In a market filled with innovation, digital products, and new startups, understanding your competitive position is more important than ever.
Whether you’re a small business owner launching a digital product or a founder scaling your tech startup, knowing how your brand compares helps you make better business decisions, attract the right customers, and grow strategically.
At Charisol, we’ve seen how small businesses struggle to define their unique value in crowded markets. Creating a clear competitive positioning map helps you visualize your strengths, identify gaps, and find the space where your brand can thrive.
Let’s walk through how to create one — step-by-step — and explore how it can shape your strategy for sustainable growth.
What Is a Competitive Positioning Map?
A competitive positioning map is a visual tool that shows how your brand or product compares to competitors based on key factors like price, quality, innovation, customer service, or any other attributes that matter to your audience.
It helps you answer questions like:
- Where do we stand in the market?
- What makes us different from others?
- Where are there opportunities to stand out?
Think of it as a snapshot of the market — one that shows where you are, where competitors are, and where you could be to win customers.
Why a Competitive Positioning Map Matters Now
In today’s digital landscape, where new products and startups emerge daily, differentiation is critical. Customers have endless options — and limited attention.
Without a clear sense of where your business stands, you risk blending into the noise. But with a strong positioning map, you can:
- Clarify your value proposition — Understand what truly sets you apart.
- Identify market gaps — Find unserved or underserved customer segments.
- Guide marketing and pricing strategies — Align your messaging and value to your ideal customer.
- Support product development — Build products that fill real market needs.
At Charisol, we help founders and small businesses identify these opportunities early — designing and developing digital products that stand out because they serve real, defined market needs.
How do I Create a Competitive Positioning Map?
Let’s break the process into five simple, practical steps.
Step 1: Define Your Market and Competitors
Start by identifying your market scope — the space where your business operates. For example, are you competing in the online learning industry, fintech, or digital health?
Then, list your main competitors. Don’t just include direct rivals who offer the same service; consider indirect competitors who solve the same problem differently.
For instance, if your business builds digital tools for startups, your competitors might include design agencies, freelance developers, or even no-code software platforms.
This clarity helps you know who and what you’re comparing yourself against.
Step 2: Choose the Right Comparison Factors
A positioning map is only as good as the factors you choose to compare.
Pick two attributes that are most relevant to your target audience and industry. These become the axes of your map.
Examples include:
- Price vs. Quality
- Innovation vs. Usability
- Customer Support vs. Product Features
- Brand Reputation vs. Accessibility
The goal is to pick dimensions that help visualize meaningful differences — not just arbitrary comparisons.
Step 3: Plot Your Competitors and Yourself on the Map
Now, draw a simple two-axis chart (you can use tools like Google Sheets, Canva, or Miro).
- The horizontal axis (X-axis) represents one factor (e.g., Price).
- The vertical axis (Y-axis) represents another (e.g., Quality).
Then, plot your competitors on the map based on how they perform on these two factors. Finally, plot your business in the same space.
This visual instantly shows where each company sits — who dominates which area, and where there might be open opportunities.
Step 4: Analyze the Gaps
Once your map is ready, look for patterns.
- Are most competitors clustered in one area?
- Is there a space that no one occupies — perhaps a “sweet spot” for your product?
- Are you competing directly with a market leader, or could you reposition to serve a different audience better?
For example, if all your competitors are high-priced with complex products, there might be room for a simpler, affordable alternative — a common strategy that helps startups break into established industries.
Step 5: Use Insights to Refine Your Brand and Strategy
Your positioning map isn’t just a visual exercise — it’s a strategic tool.
Use your insights to:
- Refine your brand message (how you communicate your value).
- Adjust your product development roadmap.
- Align your marketing strategy with where your audience sees value.
At Charisol, we’ve worked with small businesses and startups to apply these insights in real-world projects — from redesigning digital products for better user experience to creating brand identities that connect deeply with customers.
Example: Competitive Positioning Map for a Digital Product
Imagine you’re launching a project management app for small creative teams.
You might compare competitors on ease of use (X-axis) and price (Y-axis).
After plotting major players — say Asana, Trello, and ClickUp — you notice they’re clustered toward higher price points or feature-heavy interfaces.
This insight reveals an opportunity: create a lightweight, affordable, and visually intuitive tool for small teams. That’s your niche — and your map just helped you find it.
FAQs
How often should I update my positioning map?
Markets evolve quickly. It’s best to revisit your map every 6–12 months or whenever a major competitor enters the market or you launch a new product.
Can I use more than two factors?
While you can analyze multiple attributes internally, visual maps work best with two dimensions. For deeper insight, create multiple maps comparing different attributes.
Do I need special tools to create one?
Not at all. You can use free tools like Google Sheets, Canva, or Figma — or even sketch it on paper. What matters most is the clarity of your analysis, not the complexity of the tool.
What if my business doesn’t fit neatly into the map?
That’s often a good sign! It may mean you’re creating a new category or redefining one — which can become your strongest competitive advantage.
How Charisol Helps Businesses Find Their Competitive Edge
At Charisol, we believe that understanding your market position is the first step to building a strong digital presence.
From UX research and design to full-scale digital product development, we help small businesses and startups find their unique market position — and design products that match it.
Our process always starts with understanding your users, your goals, and your competitors. Then we build digital experiences that communicate your difference clearly, helping you attract customers and grow sustainably.
If you’re ready to position your business for success, let’s help you bring that clarity to life.
Start your journey today at charisol.io or go directly to charisol.io/get-started/.
Conclusion
A competitive positioning map doesn’t just show where you stand — it reveals where you could be. It’s a simple, powerful way to find your space in the market and build a brand that connects meaningfully with your audience.
So here’s a question to reflect on: If your customers mapped your brand today, where do you think you’d appear — and where do you want to be tomorrow?