1. What Is Competition Research?
Competition research is the process of identifying and analysing your business competitors to understand their strengths, weaknesses, strategies, and market positioning. It helps you differentiate and improve your own business approach.
2. Why Is Competition Research Important?
- Reveals market trends and customer expectations
- Identifies opportunities and gaps
- Helps you avoid costly mistakes
- Strengthens pricing, marketing, and product strategies
- Prepares you for investor and lender questions
3. Types of Competitors You Should Know
- Direct competitors: Offer similar products/services in the same market
- Indirect competitors: Offer alternative solutions to the same customer need
- Emerging competitors: New businesses or trends entering the market
- Substitute competitors: Unrelated industries offering alternative experiences
4. What to Analyse in Your Competitors
- Products or services offered
- Pricing models and value propositions
- Target audience and customer segments
- Brand messaging and visual identity
- Marketing strategies (online, offline, partnerships)
- Distribution channels
- Customer reviews and satisfaction
- Strengths and weaknesses (SWOT)
- Financial performance (if public or available)
5. Tools and Methods for Competition Research
- Google search and company websites
- Social media analysis (followers, engagement, ad types)
- Customer review platforms (Trustpilot, Google Reviews)
- Marketplaces like Amazon or Etsy
- Google Trends for interest and visibility
- SEMrush, Ahrefs, or Ubersuggest for SEO and traffic data
- LinkedIn for team size and hiring trends
- Company filings from Companies House (UK)
6. Creating a Competitor Profile Sheet
Track each competitor using a simple structure:
- Name and location
- Product/service offering
- Price range
- Strengths and weaknesses
- Unique selling points (USPs)
- Online visibility and channels used
- Customer feedback summary
7. How to Use the Data Strategically
- Improve your unique selling proposition (USP)
- Spot pricing or service gaps
- Build a stronger marketing strategy
- Predict competitor moves
- Discover niche markets or underserved customers
8. Ethical Considerations in Competition Research
- Never use fake identities to gather information
- Do not copy content, branding, or patented methods
- Respect confidentiality and fair market practice
Frequently Asked Questions
Is competitor research necessary for small businesses?
Yes—it’s crucial regardless of size or industry.
How often should I do competition research?
At least annually, or whenever launching a new product or entering a new market.
Can I use competitors’ customer reviews for insight?
Yes—they reveal strengths and pain points in your niche.
Do I need special software for this?
Not necessarily—manual research and free tools often suffice for small businesses.
Can I learn from competitors’ mistakes?
Absolutely—understanding what frustrates their customers can guide your improvements.
Is price matching always a good idea?
No—compete on value, not just cost. Offer better service or features where possible.
Conclusion
Competition research isn’t about copying—it’s about understanding. With the right insights, UK businesses can create standout strategies, refine offerings, and gain a strong edge in a crowded market. Make it a regular habit for smart, sustainable growth.