Design thinking resource

Competitive Analysis

A research method for understanding existing solutions, identifying gaps and uncovering opportunities for innovation.

01

Learn from existing solutions

Few challenges exist in isolation. Most users already have solutions, workarounds or alternatives that help them achieve their goals. Competitive analysis helps teams understand what currently exists and how people experience those options.

These solutions may include direct competitors, indirect competitors, substitute products, internal processes or informal approaches people have developed for themselves. Examining the existing landscape provides valuable context and helps teams avoid designing in a vacuum.

02

Identify strengths, weaknesses and gaps

Competitive analysis involves systematically examining what competing products, services or organisations do well and where limitations exist. Teams may compare features, user experiences, customer support, accessibility, pricing, sustainability, reliability or overall value propositions.

By comparing multiple solutions, patterns often emerge. Some user needs may be addressed effectively, while others remain underserved. These gaps can reveal opportunities for differentiation, improvement and innovation.

The goal is not to copy existing solutions but to understand what can be learned from them.

03

Discover opportunities for innovation

Innovation often occurs when organisations recognise unmet needs, overlooked audiences or opportunities to improve an existing experience. Competitive analysis helps teams identify where current solutions succeed and where frustrations, inefficiencies or barriers continue to exist.

By understanding the broader market and user environment, teams can make more informed decisions about where to focus their efforts and how to create meaningful value. The insights generated can support problem definition, ideation and strategic planning activities throughout the design process.

Put the method to work

Analyse the competitive landscape

01

Define the focus

Identify the product, service, experience or challenge being investigated and clarify the scope of the analysis.

02

Identify competitors and alternatives

List direct competitors, indirect competitors and substitute solutions that address similar user needs or goals.

03

Compare key elements

Assess factors such as features, user experience, strengths, weaknesses, pricing, accessibility, sustainability and customer value.

04

Identify opportunities

Look for unmet needs, gaps, recurring frustrations and areas where new or improved solutions could provide greater value.

Why it matters

What competitive analysis makes possible

Market awareness

Develop a clearer understanding of the existing landscape surrounding a challenge or opportunity.

Informed decision-making

Support strategic decisions with evidence rather than assumptions about competitors and alternatives.

Opportunity identification

Reveal unmet needs, market gaps and areas where innovation may create meaningful value.

Better design outcomes

Help teams create solutions that are differentiated, relevant and responsive to user needs.

Continue exploring

Return to Engage with Empathy.

Place this method back within the broader 5E Design Thinking Framework and continue developing your understanding.

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