Competitive Analysis That Actually Informs Decisions
- Rod Morgan, LSSMBB
- 1 day ago
- 4 min read
Moving Beyond SWOTs to Signals, Systems, and Strategy
Most leaders agree that understanding the competitive landscape matters. Fewer agree on how to do it well. And fewer still use competitive analysis as a living input into real decisions, rather than a static document produced once a year and quietly forgotten.
Competitive analysis is often treated as an exercise in information gathering. In reality, its value lies in sense-making — identifying patterns, shifts, and implications that inform where you should focus next.
This article outlines a practical, repeatable approach to competitive analysis that goes beyond surface-level comparisons and helps organizations anticipate change, not just react to it.
What Is a Competitive Analysis — Really?
At its core, a competitive analysis is not about copying competitors or obsessing over features and prices. A well-designed competitive analysis helps you answer five questions:
Who are we really competing with — today and tomorrow?
Where are competitors genuinely strong, and where are they vulnerable?
What signals of change are emerging in the market?
How are customer expectations shifting?
What does all of this mean for us?
Done properly, competitive analysis becomes a decision support tool, not a reporting artifact.
Why Most Competitive Analyses Fall Short
In practice, many organizations struggle because their analysis:
> Stops at high-level SWOTs
> Fails to connect insight to action
> Captures a snapshot in time, not momentum
> Focuses on features rather than systems
The result is often a slide deck that looks impressive but doesn’t materially influence strategy, investment, or execution.
A More Useful Way to Conduct a Competitive Analysis
Instead of asking “How do we compare?”, a more productive question is: “What can we learn from competitors that helps us make better decisions?” To do that, it helps to analyze competitors through multiple lenses and assess each lens consistently.
The 9 Lenses of Competitive Analysis
Here’s a set of lenses that captures not just what competitors offer, but how they operate and evolve:
Product or Service – What they offer and how it delivers value
Pricing – Price points, models, and perceived value
Place or Channels – How offerings reach customers
Promotion – Messaging, marketing, and visibility
Positioning – How they frame themselves in the market
Reputation – Credibility, trust, and perceived quality
People – Skills, expertise, leadership, and culture
Partnerships – Alliances, ecosystems, and leverage
Process & Pace – How quickly and effectively they execute and adapt
These lenses help avoid over-focusing on a single dimension (often pricing or features) at the expense of the broader system.
The 5 Assessment Dimensions That Matter
For each lens, assess competitors using the same five questions:
Current State: What does the competitor look like today in this area?
Strengths: Where are they clearly performing well?
Weaknesses: Where are they constrained, exposed, or inconsistent?
Signals of Change: What early indicators suggest things are shifting — strategy, investment, messaging, behavior?
Implications for Us: Given all of the above, what should we consider doing differently?
This last question is the most important — and the one most analyses never answer.
A Practical Example: Acme Inc.
To make this concrete, imagine you’re analyzing a fictional competitor: Acme Inc. For expediency, we'll only touch on three of the nine lenses but that will be more than sufficient to give you a sense of how all nine lenses might be addressed in your analysis.
If you would like to follow along with the free Excel workbook that includes the instructions, templates, and Acme example for all nine lenses, please click on this link:
Lens: Product or Service
Background information we have compiled on Acme: ACME Inc. offers a cloud-based training platform focused on operational excellence. Its core product is a standardized library of short courses, supported by optional certifications and downloadable resources.
Recently, ACME has begun embedding AI-generated summaries and quizzes to increase course completion rates.
Current State: Broad but aging product portfolio
Strengths: Reliable, familiar, widely adopted
Weaknesses: Limited innovation, slow updates
Signals of Change: Hiring product designers; new beta releases
Implications for Us: Opportunity to differentiate on modern design and adaptability
Lens: Pricing
Background information we have compiled on Acme: ACME Inc. uses a low-cost subscription model with aggressive discounting for annual plans. Pricing emphasizes affordability and scale rather than depth or personalization. Promotional pricing is frequently used to acquire new users.
Current State: Premium pricing
Strengths: Signals quality and stability
Weaknesses: Price sensitivity emerging among customers
Signals of Change: Discount campaigns appearing
Implications for Us: Reinforce value-based pricing and flexibility
When this exercise is repeated across all nine lenses, patterns begin to emerge — not just about Acme Inc., but about the direction of the market itself.
Turning Analysis into Action
A competitive analysis only creates value if it leads to better decisions. That means:
Revisiting your competitive analysis regularly and keeping it current and relevant
Treating it as a living system, not a one-time task
Linking insights to strategy, capability development, and priorities
In fast-moving environments, the goal isn’t to predict the future perfectly... it’s to notice change earlier and respond more thoughtfully.
Final Thought
Competitive analysis isn’t about keeping score. It’s about learning faster than your environment is changing. When you combine multiple lenses, consistent assessment, and a focus on implications — competitive analysis becomes less about competitors and more about clarity.
And clarity, in the end, is what enables better choices.
Comments