Six cells that name the direct rivals, the indirect threats, the substitutes you forget to count, and the wedge that lets you win first.
Layout
Competitor analysis
6 blocks · 2-row grid
"Your real competition isn't who you think it is — it's whatever the customer is doing today."
What it is
A six-cell grid. The top row names who you compete with — direct rivals, indirect alternatives, substitutes (including "doing nothing"). The bottom row names your strategic position — strengths to lean on, gaps every rival shares, and the thin wedge that's yours to win first.
Origin
Competitor analysis as a discipline grew out of strategic-management research that argued every business is shaped not just by direct rivals but by indirect alternatives, substitutes, and the threat of new entrants. This canvas packages the lens into a compact grid you can fill in 30 minutes — and unlike a feature matrix, it doesn't let you ignore the alternatives that quietly win most deals.
When to reach for it
You're entering a new market and need to map the players before you commit to a positioning.
You're writing launch copy and need to know which alternatives the customer will mentally compare you to.
You're prepping a board update on the competitive landscape and want the picture beyond the obvious rivals.
The blocks
Worked example uses Airbnb at launch.
What good looks like
Products a customer would put on a side-by-side shortlist with yours. Name them and note the segment they own.
Example — Airbnb at launch
Couchsurfing (free crash-stays with locals, no payment), VRBO (vacation rentals with a family/group focus), Craigslist sublets (peer-to-peer but anonymous, no escrow or reviews).
What good looks like
Different category, same job-to-be-done. Often the more dangerous rivals because the customer doesn't consciously compare.
Example — Airbnb at launch
Hotel chains (Hilton, Marriott, Holiday Inn), boutique B&Bs, and hostels offering private rooms — different category, same "where do I sleep on this trip?" job.
What good looks like
Spreadsheets, manual workflows, "doing nothing," staying with the status quo. For most jobs, this is the dominant alternative.
Example — Airbnb at launch
Crashing on a friend's couch, staying home and skipping the trip entirely, or booking a hotel an hour out of town and accepting the long daily commute.
What good looks like
Where you're objectively ahead — speed, brand, channel, data, distribution. The advantages a rival can't copy in a quarter.
Example — Airbnb at launch
A curated trust layer (the founders personally vetted the first hosts), professional photography that made listings look credible, and payment escrow that neither Craigslist nor Couchsurfing could match.
What good looks like
Where every rival is weak. The shared gap is your insertion point — and often the launch wedge.
Example — Airbnb at launch
Hotels can't unlock unique central locations during conference weeks. Craigslist has no identity, reviews, or escrow. Couchsurfing has no payment guarantee, so hosts who would gladly rent simply won't list.
What good looks like
The thin edge you can win first. Specific enough to ship in a quarter, valuable enough that winning it opens the next adjacent segment.
Example — Airbnb at launch
Conference-week lodging in cities with sold-out hotels — a moment where every alternative visibly fails, willingness to pay is high, and one good experience converts the guest into a repeat user.
How to use it
Start with direct rivals — anyone the customer would shortlist next to you on the same day.
Add indirect alternatives — different category, same job-to-be-done.
Then the unflattering work: list substitutes, including spreadsheets, manual processes, and "we don't do it today."
For each rival, name their strengths and their gaps. The gaps that everyone shares are your insertion point — that's the wedge.
Common mistakes
Listing only direct rivals. Substitutes and indirect alternatives often win more deals than the products you study most closely.
Building a feature matrix that flatters your product on every row. If you win every column, the matrix is wrong, not the product.
Confusing competitor analysis with competitor-bashing. The point is sharper positioning, not a sales-deck takedown.
Spin up the canvas in one click. Copilot will score every cell against the same rubric this guide describes.
Keep reading