This competitor analysis chart was created by Melissa from Sweet Daddy Designs.
Direct Competitor: These competitors offer the same product or service to the same target audience as you.
Example: Coca-Cola vs Pepsi (both soft drinks)
Why it’s important: These competitors are looking at the same audience with the same service/product so understanding their strategies and strengths with help you differentiate your brand and highlight your unique selling points.
Indirect Competitor: These competitors offer alternative solutions to the same target audience with a different product or service.
Example: Movie theaters vs streaming services (both offer entertainment)
Why it’s important: They can take up market share by appealing to the same audience in different ways. Knowing their strengths can help you expand your offers or refine your positioning.
Aspirational Competitor: Brands that operate at a higher level or in a different niche, but serve as a benchmark for where you’d like your brand to go.
Example: A boutique bakery aspiring to match Magnolia Bakery’s brand presence.
Why it’s important: They provide inspiration for branding, marketing, customer experience, or growth strategies.
Replacement Competitors: Businesses offering something that could replace your product/service entirely, usually through innovation or changing customer habits
Example: Uber and Lyft vs Taxis or Blockbuster vs Netflix
Why it’s important: These represent long term threats and help you stay adaptable to evolving marketing trends.