How to Do a Competitor Analysis for Your Business (Free Template)
To do a competitor analysis, pick three to five businesses your customers compare you with, then compare them on five things: what they sell and charge, what they promise, what their customers say in reviews, what they post on social media, and what ads they run. Write it in one table, find the gaps nobody fills well, and decide what you will do differently. A first pass takes about two hours, using free tools.
Step 1: Choose the right competitors
Think like your customer. Who else do they look at before they buy from you?
Direct competitors: the shops or brands selling the same thing to the same people.
Local alternatives: the shop down the road, even if it is smaller.
Online alternatives: marketplaces and online brands your customers order from.
Three to five is enough. More than that and you will not act on it.
Step 2: Compare what they sell and charge
Visit their website, catalogue or shop. Note:
Their main products or services and price range.
Offers, bundles and delivery terms.
Anything they do that you do not, and the other way round.
Step 3: Read their promises
Look at their website headline, Instagram bio and ads. What do they say makes them better: price, quality, speed, tradition, design? Most businesses in a category say the same thing. That sameness is your opening.
Step 4: Read their reviews
Google reviews are the most honest research you will find.
Good reviews show what customers value most.
Bad reviews show what competitors get wrong: late delivery, rude staff, poor finishing, no replies on WhatsApp. Each complaint is something you can do better and say so.
Step 5: Study their social media
For each competitor's Instagram, Facebook or LinkedIn, note:
How often they post.
Which posts get the most comments and shares, not just likes.
Which formats they use: reels, carousels, single posts.
What they never talk about.
Step 6: See what ads they run
The Meta Ad Library is free and shows the ads any Facebook or Instagram page is running right now. Search a competitor's page to see their offers, creatives and how long ads have been running. Ads that run for months are usually working.
The free template
| You | Competitor A | Competitor B | Competitor C | |
|---|---|---|---|---|
| Main products and price range | ||||
| Main promise | ||||
| What customers praise | ||||
| What customers complain about | ||||
| Posts per week | ||||
| Best-performing post type | ||||
| Ads running now | ||||
| What we do better |
Copy it into a spreadsheet and fill it in for each competitor.
Step 7: Turn it into decisions
Analysis is only useful if it changes what you do. End with three short lists:
Gaps to fill: what customers want that no competitor does well. For example, fast WhatsApp replies, clear prices online or same-day delivery.
What to say: one promise that is true for you and not claimed by everyone else.
What to post: topics and formats that work for competitors, made your own way for your customers.
Mistakes to avoid
Copying a competitor's posts. Learn from what works, but make it yours; copies look second-rate.
Competing only on price. There is always someone cheaper. Compete on what customers praise and competitors get wrong.
Doing it once. Repeat it every three months, or every month for social media.
Keeping an eye on competitors every week
Checking competitors' pages every week takes time. Nebulaa's Competitor insights add-on follows the competitor pages you choose and shows what they post and which posts worked, so you can plan your own. It is ₹500 a month plus GST on Starter and Growth, and included in Agency. See competitor insights. For the rest of your plan, see the Instagram marketing strategy for small businesses.
Questions
What is a competitor analysis?
A side-by-side look at the businesses your customers compare you with: what they sell and charge, what they promise, what customers say about them, and how they market themselves.
What free tools can I use?
Google search and Google reviews, competitors' websites and social pages, and the free Meta Ad Library for the ads they run on Facebook and Instagram.
How often should I do it?
A full analysis every three months, and a quick look at competitors' social media every month.
Sources
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