How to Analyze Your Competitors When Setting Business Objectives

12 July 2026

Let’s face it — running a business without checking out what your competitors are doing is like driving with your eyes closed. If you're aiming to grow, scale, or even survive in your industry, competitor analysis should be glued to your strategy. Especially when you’re setting business objectives. But the big question is – how do you actually do that without getting lost in the noise?

In this guide, we're breaking down the step-by-step process of analyzing your competitors so that your business objectives aren’t shots in the dark, but strategic moves that can actually give you a winning edge.

Why Competitor Analysis Matters When Setting Objectives

Before we jump into the “how,” let’s talk about the “why.” Why should you care about what your competitors are doing?

Simple. If you don’t know what your rivals are up to, you won’t know what you’re up against. Business objectives shouldn’t be set in a vacuum — they need to reflect real-world conditions. Your competitors are a living, breathing benchmark of what’s possible in your space. Analyzing them helps you:

- Identify gaps in the market
- Spot industry trends early
- Avoid mistakes they’ve already made
- Set realistic, achievable goals
- Find ways to stand out

Think of it this way: competitor analysis is like scouting the other team before a big game. Would you go in blind? Probably not.

Step 1: Identify Who Your Real Competitors Are

First things first, who are you even competing against? Not everyone in your industry is your direct competition. There are different kinds:

- Direct Competitors: These are businesses offering the same product/service to the same target audience.
- Indirect Competitors: They offer alternatives to your product. They might not be carbon copies of your business, but they still steal market share.
- Emerging Competitors: New entrants that are gaining traction quickly.

Use tools like Google Search, social media, and even customer feedback to find out who your buyers are comparing you with. If you’re a coffee shop, you might think Starbucks is your competitor, but it might actually be the bakery around the corner with killer lattes.

Tip: Make a list. Categorize them by the type of competitor and how much of a threat they pose.

Step 2: Analyze Their Business Model

Now that you’ve got your list, it’s time to dig in. Start by asking questions like:

- What’s their unique selling proposition (USP)?
- Are they positioned as affordable or premium?
- What’s their revenue model? Subscription? One-time purchase?
- Do they have any partnerships or external funding?
- How do they distribute their products/services?

You can often get this info from their website, press releases, interviews, and financial reports (if they’re a public company). Even customer reviews can give clues about how they operate.

If your competitor is thriving with a subscription model while you’re trying to do one-time sales, maybe it’s time to rethink your strategy.

Step 3: Dive Into Their Marketing Strategy

This is where things get juicy. A competitor’s marketing tells you a lot — who they’re targeting, what platforms they’re using, and what messaging resonates with the audience.

Look at Their Website

Ask yourself:

- Is it user-friendly?
- What’s the tone of their content?
- Are they blogging? How often?
- What calls-to-action (CTAs) are they using?

Stalk Their Social Media (In a Good Way)

What platforms are they active on? Check for:

- Engagement levels (likes, comments, shares)
- Types of content (videos, infographics, memes)
- Posting frequency
- Paid campaigns and promotions

Check Out Their SEO Game

Use tools like:

- Ahrefs
- SEMrush
- Ubersuggest
- Moz

These can show you:

- Top-performing keywords
- Backlinks
- Domain authority
- Organic traffic estimates

If your competitor is ranking #1 on Google for “best vegan candles,” you need to know what kind of content got them there — and how you can do it better.

Step 4: Keep an Eye on Their Pricing Strategy

Price can be a game-changer. Too high, and you lose customers; too low, and you undercut yourself. Analyzing your competitors’ pricing helps you position your offerings correctly.

Here’s what to look for:

- Are their prices higher or lower than yours?
- Do they offer tiered pricing or bundles?
- Any discounts, promos, or loyalty programs?
- How transparent are they with their pricing?

Sometimes, it’s not just about the price — it’s about perceived value. If they’re charging more and still getting customers, dig into why.

Step 5: Evaluate Their Customer Experience

Want to know what really moves the needle today? Customer experience (CX).

Check their:

- Reviews and ratings: Look on Google, Yelp, TrustPilot, etc.
- Customer service: Try contacting their support — how fast do they respond?
- Return policy: Is it customer-friendly?
- Onboarding and follow-up: What do their emails look like post-purchase?

A competitor with rave reviews and a seamless buying experience is doing something right. Use that info to improve your own CX.

Step 6: Study Their Brand Identity

A solid brand goes beyond logos and colors. It’s about the story, the vibe, the personality. Ask:

- What makes their brand memorable?
- Do they have a consistent tone in all channels?
- How do they position themselves in the market?
- Are they targeting a niche or going broad?

If your competitor’s brand feels more connected with your shared audience, you might need to rework your messaging or visual identity.

Step 7: Track Their Innovations and Product Development

Are they launching new products or features? Updating their services? Rebranding?

Innovation can show where the market is heading. Keeping tabs on it helps you anticipate shifts instead of playing catch-up.

Ways to stay updated:

- Subscribe to their newsletters
- Follow their blogs and social channels
- Set Google Alerts for their brand name
- Monitor press releases and product updates

This is especially crucial in tech and fast-moving industries, where one new rollout can completely change consumer expectations.

Step 8: Quantify Their Strengths and Weaknesses

It’s not enough to just gather data. You need to make sense of it.

Create a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for each major competitor.

For example:

| Category | Competitor A |
|--------------|---------------------------------------|
| Strengths | Strong branding, high domain authority |
| Weaknesses | Poor customer service, overpriced |
| Opportunities | Untapped younger demographic |
| Threats | New entrants, changing market trends |

This will help you position your own goals in a way that fills the gaps and avoids their pitfalls.

Step 9: Use the Insights to Set Smarter Business Objectives

Now, the whole point of all this homework is to actually apply it. Use what you’ve uncovered to:

- Set realistic revenue goals: Based on what others in your niche are pulling in.
- Choose the right marketing channels: Don’t throw money at TikTok just because it’s hot — go where your competitors are succeeding.
- Refine your value proposition: Offer what others don’t. Make your uniqueness your advantage.
- Improve operations: If competitors are killing it with automation, maybe it’s time to upgrade your tech stack.

Your goals might look like this:

- Increase organic traffic by 40% over six months (to match or beat top competitors)
- Launch a new product feature that solves a problem competitors aren’t addressing
- Improve customer retention by 20% through better onboarding based on competitor benchmarks

Step 10: Monitor Progress and Keep an Eye on the Competition

Competitor analysis isn’t a one-time thing. The market changes. People evolve. Tech disrupts. So should your strategy.

Set a schedule — maybe once a quarter — to review what your competitors are up to. Track your metrics. And tweak your objectives as needed.

Think of it like going to the gym. You don’t just bench 200 once and call it a day. You show up, push harder, and keep track.

Final Thoughts

Analyzing your competitors when setting business objectives isn’t about copying what they’re doing. It’s about understanding the playing field so you can carve out your own path — strategically and confidently.

So next time you’re dreaming up big goals for your business, don’t just look inward. Look around. Then leap forward.

Your competitors? They're not just threats. They're clues.