How to carry out a competitor analysis

Understanding your competition can be the key to building a stronger business.

Whether you're just getting started or already running a company, it's important to know who else is serving your potential customers – and how well they're doing it.

This is where competitor analysis comes in. If you're running a small business in Ireland and you haven't yet looked too closely at your competition, this short guide will give you the tools and direction to do it effectively and efficiently.

What is competitor analysis?

At its simplest, competitor analysis is a structured way of identifying, understanding and assessing businesses that offer similar products or services to your own.

A good working definition is:

Competitor analysis is a process of researching your direct and indirect competitors to understand their strengths, weaknesses, strategies and how your business compares.

You might be surprised at how many types of competition you face. Here's a helpful way to think about it:

• Direct competitors: Offer the same product or service in the same way (for example, two cafés on the same street).

• Indirect competitors: Solve the same problem with a different method (for example, a home coffee subscription service vs. a local café).

• Alternative solutions: Products or services that could prevent people from needing your solution at all (for example, someone brewing coffee at home instead of visiting a café).

There is rarely such a thing as "no competition". The real question is: what job does your customer need done and how else might they get it done?

The importance of competitor analysis

Many Irish business owners focus on their products or marketing but don't take the time to really investigate their competitors. That's a missed opportunity.

Here are just a few advantages of competitor analysis:

• Understand what your competitors do better (and worse) than you.

• Find gaps in the market you can fill.

• Stay ahead of new trends and customer expectations.

• Identify areas for improvement in your pricing, marketing or customer service.

• Benchmark your performance.

Ultimately, competitor analysis helps you make smarter, more strategic decisions for your business.

Where to start: A simple competitor analysis template

To get going, create a simple spreadsheet or table with a few key headings. Here are some useful competitor analysis components to include:

• Competitor's name

• Type (direct, indirect, alternative)

• Location

• Products/services offered

• Pricing

• Quality of customer service

• Online presence (website, social media, reviews)

• Unique selling points (USPs)

• Weaknesses

• Your thoughts and observations

This competitor analysis template doesn't need to be fancy. You could do it in Excel, Google Sheets or even in a notebook. The point is to keep it structured and consistent.

How to identify your competitors

1. Ask your customers: "Where else did you consider going?"

2. Google search: Use relevant keywords with your location (for example, "wedding florist Dublin").

3. Online marketplaces: Look at who's selling similar things on platforms like Etsy, Facebook Marketplace or Instagram.

4. Social media: See who's advertising to your audience.

5. Local directories: Explore sites like Golden Pages, Yelp or Irish business listings.

6. Offline: Take a walk around your area, attend networking events or trade shows.

Questions to ask in your analysis

Here are some important competitor analysis questions to consider:

• What are they doing well?

• Where are they falling short?

• What are their customers saying in reviews?

• How do they present themselves online?

• How do their prices compare to yours?

• Do they offer bundles, discounts or add-ons?

• How quickly do they respond to enquiries?

• What's their customer journey like – from first contact to after-sales?

Put yourself in a customer's shoes. If you were shopping around, what would make you choose them over you?

How to gather the information

This part doesn't have to be complicated. Think of it as a bit of light detective work:

• Website audit: What's their site like to use? What's their messaging? Are they showcasing testimonials or case studies?

• Social media review: What platforms do they use? How often do they post? What kind of content gets the most engagement?

• Customer reviews: Check Google, Trustpilot, TripAdvisor and Facebook. What are customers praising? What are they complaining about?

• Secret shopping: Send an enquiry by email, social media or phone. Pay attention to how quickly they respond, how professional they are and what information they offer.

• Visit in person: If they have a physical location, go have a look. What's the customer experience like?

If you're worried about being recognised, ask a friend or family member to help with this step.

Go beyond the surface

It's tempting to stop once you've checked websites and prices. But to really gain insight, go deeper. For example:

• Are they offering packages or upsells you hadn't considered?

• Are they using tools or technology (for example, WhatsApp for quotes, online booking) that make life easier for customers?

• Are they promoting certain values like sustainability, local sourcing or community support?

The goal isn't to copy – it's to understand where you can set yourself apart and improve.

Competitor analysis in marketing

When it comes to marketing, you need to understand how your competitors are positioning themselves and promoting their brand – and how customers are responding.

• What tone do they use?

• What kind of content do they create (blogs, videos, tutorials)?

• Are they running ads? If so, where?

• Do they collaborate with influencers or local partners?

This helps you see what's working, what's missing and where you can shine.

Using your research

Once you've collected all your insights, the next step is turning that information into actionable strategies.

Here are some things you can put into practice.

• Improve your website's layout or loading speed

• Reconsider your pricing or offer new packages

• Create a clearer value proposition (why choose you?)

• Respond faster to customer enquiries

• Add new features or services based on what others lack

• Emphasise your unique benefits in your marketing

And importantly – set a reminder to repeat your competitor analysis every six to 12 months. Markets shift. New players emerge. Staying aware means staying ahead.

How to write a competitor analysis for a business plan

If you're writing a business plan – maybe for a grant application, investor or strategic growth – you'll need to summarise your findings clearly.

A basic structure might look like this:

1. Overview of your market

2. List of main competitors (three to five should be enough)

3. Comparison of products, pricing and positioning

4. Opportunities and threats

5. How you'll compete (your advantages)

Focus on facts and insights, not just opinions. Show that you've done your homework and understand your place in the market.

Final thoughts

Competitor analysis is not about spying or copying. It's about being informed.

Many sectors are becoming more competitive and customers' expectations are rising.

If you're not sure where to start, pick three local competitors and begin with a simple online review. Build from there. The more you learn, the more empowered you'll be to make smart decisions.

Don't underestimate the value of knowing your competition. It could be the difference between standing out and being left behind.

Tip to get started this week: Write down five questions your customers often ask you – then use those questions to see how your competitors respond. You might just discover a few "eureka" moments of your own.

Relevant resources

• Using a SWOT analysis to research competitors and customers

• What is a business USP and how do you build one?

• What are the benefits of market research?