---
name: competitive-analysis
description: "Analyze your competitive landscape using Porter's Five Forces and modern frameworks—understand industry dynamics, identify strategic opportunities, and position your business for sustainable advantage. Use when: **Evaluate an industry** before entering or investing; **Understand competitive dynamics** in your market; **Identify strategic opportunities** based on industry structure; **Assess threats** from competitors, new entrants, or substitutes; **Develop positioning strategy** relative to ..."
license: MIT
metadata:
  author: ClawFu
  version: 1.0.0
  mcp-server: "@clawfu/mcp-skills"
---

# Competitive Analysis

> Analyze your competitive landscape using Porter's Five Forces and modern frameworks—understand industry dynamics, identify strategic opportunities, and position your business for sustainable advantage.

## When to Use This Skill

Use this skill when you need to:

- **Evaluate an industry** before entering or investing
- **Understand competitive dynamics** in your market
- **Identify strategic opportunities** based on industry structure
- **Assess threats** from competitors, new entrants, or substitutes
- **Develop positioning strategy** relative to competition
- **Prepare investor pitches** with market analysis
- **Plan product launches** in competitive markets
- **Make pricing decisions** based on competitive forces

This skill is particularly valuable for:
- Founders evaluating market opportunities
- Strategy teams assessing competitive position
- Investors analyzing industry attractiveness
- Product managers planning market entry
- Business development professionals identifying partners/threats

---

## Methodology Foundation

**Source:** Michael Porter - Harvard Business School (1979-present) + modern competitive intelligence best practices

**Core Principle:** Industry structure, together with a company's relative position within the industry, are the two basic drivers of company profitability. Understand the five competitive forces to anticipate shifts, shape industry evolution, and find better strategic positions.

> "The essence of strategy formulation is coping with competition."

---


## What Claude Does vs What You Decide

| Claude Does | You Decide |
|-------------|------------|
| Structures production workflow | Final creative direction |
| Suggests technical approaches | Equipment and tool choices |
| Creates templates and checklists | Quality standards |
| Identifies best practices | Brand/voice decisions |
| Generates script outlines | Final script approval |

## What This Skill Does

When invoked, I will guide you through comprehensive competitive analysis:

1. **Define your competitive arena** - Identify industry boundaries and key players
2. **Analyze the Five Forces** - Evaluate each competitive force systematically
3. **Map competitor landscape** - Profile direct and indirect competitors
4. **Assess industry attractiveness** - Determine profit potential
5. **Identify strategic opportunities** - Find positioning gaps and advantages
6. **Monitor competitive dynamics** - Set up ongoing intelligence gathering

---

## How to Use

Provide information about your competitive situation:

**Example prompts:**

- "Analyze the competitive landscape for [industry/market]"
- "Apply Porter's Five Forces to my [business type]"
- "Create a competitor analysis for [company/product]"
- "Assess the threat of new entrants in [market]"
- "Evaluate supplier/buyer power in [industry]"
- "Help me find competitive positioning opportunities"

**Information that helps:**

- Your industry or market
- Key competitors you're aware of
- Your product/service category
- Geographic scope
- Target customer segment
- Current market position

---

## Instructions

### The Five Forces Framework

#### Overview

Porter's Five Forces determine the competitive structure of an industry and its profitability.

```
                    Threat of
                   New Entrants
                        ↓

Supplier    →    COMPETITIVE    ←    Buyer
 Power           RIVALRY              Power

                        ↑
                    Threat of
                   Substitutes
```

| Force | Key Question | High = |
|-------|--------------|--------|
| **Rivalry** | How intense is competition? | Lower profits |
| **New Entrants** | How easy to enter? | More competition |
| **Supplier Power** | Can suppliers dictate terms? | Higher costs |
| **Buyer Power** | Can customers dictate terms? | Lower prices |
| **Substitutes** | Are alternatives available? | Less pricing power |

---

### Force 1: Competitive Rivalry

Analyze the intensity of competition among existing players.

#### Assessment Questions

| Factor | Questions to Ask |
|--------|------------------|
| **Number of competitors** | How many significant players exist? |
| **Market concentration** | Is it dominated by few or fragmented? |
| **Industry growth** | Growing, stable, or declining? |
| **Product differentiation** | Are products similar or distinct? |
| **Switching costs** | How hard is it for customers to switch? |
| **Exit barriers** | Can companies easily leave? |
| **Fixed costs** | Do high fixed costs drive price competition? |

#### Rivalry Intensity Scale

| Level | Characteristics | Profit Impact |
|-------|-----------------|---------------|
| **Low** | Few competitors, differentiated products, high growth | Higher margins |
| **Medium** | Several competitors, some differentiation, stable growth | Moderate margins |
| **High** | Many competitors, commodity products, slow/negative growth | Thin margins |

#### Red Flags (High Rivalry)
- Frequent price wars
- Heavy advertising spending
- Constant product launches
- Difficulty maintaining margins
- High customer churn

---

### Force 2: Threat of New Entrants

Analyze how easy or difficult it is for new players to enter your market.

#### Barriers to Entry Assessment

| Barrier | Low Threat | High Threat |
|---------|------------|-------------|
| **Capital requirements** | Low startup costs | High investment needed |
| **Economies of scale** | Small players viable | Must be large to compete |
| **Brand loyalty** | Weak brands | Strong incumbent brands |
| **Switching costs** | Easy to try new | Locked-in customers |
| **Distribution access** | Open channels | Controlled by incumbents |
| **Regulatory** | Few requirements | Heavy licensing/compliance |
| **Technology/IP** | Accessible tech | Patents, proprietary tech |
| **Network effects** | Weak | Strong winner-take-all |

#### Entry Threat Signals
- Venture capital flowing into your space
- Adjacent companies expanding into your market
- International competitors entering
- Technology reducing traditional barriers
- Regulatory changes opening markets

---

### Force 3: Supplier Power

Analyze the leverage suppliers have over industry participants.

#### Supplier Power Assessment

| Factor | Low Power | High Power |
|--------|-----------|------------|
| **Number of suppliers** | Many alternatives | Few/sole source |
| **Uniqueness** | Commodity inputs | Proprietary/specialized |
| **Switching costs** | Easy to change | Expensive/difficult |
| **Forward integration** | Unlikely | Credible threat |
| **Importance to supplier** | Major customer | Small customer |
| **Substitute inputs** | Available | None |

#### High Supplier Power Examples
- Specialized software vendors (few alternatives)
- Rare material suppliers (limited sources)
- Highly skilled labor markets (talent scarcity)
- Platform dependencies (AWS, Shopify, etc.)

---

### Force 4: Buyer Power

Analyze the leverage customers have over your business.

#### Buyer Power Assessment

| Factor | Low Power | High Power |
|--------|-----------|------------|
| **Buyer concentration** | Many small buyers | Few large buyers |
| **Purchase volume** | Small orders | Large orders |
| **Standardization** | Differentiated products | Commodity products |
| **Switching costs** | High costs to change | Easy to switch |
| **Price sensitivity** | Value-focused | Price-focused |
| **Information** | Limited knowledge | Well-informed |
| **Backward integration** | Unlikely | Credible threat |

#### Managing Buyer Power
- Differentiate your offering
- Create switching costs (integrations, training, data)
- Target less price-sensitive segments
- Build brand loyalty
- Diversify customer base

---

### Force 5: Threat of Substitutes

Analyze alternatives that meet the same customer need differently.

#### Substitute Threat Assessment

| Factor | Low Threat | High Threat |
|--------|------------|-------------|
| **Price-performance** | Worse value | Better value |
| **Switching costs** | High | Low |
| **Buyer propensity** | Loyal to current | Open to alternatives |
| **Functional similarity** | Different experience | Similar outcome |

#### Common Substitute Patterns

| Your Category | Potential Substitutes |
|---------------|----------------------|
| Physical stores | E-commerce |
| Air travel | Video conferencing |
| Newspapers | Social media, podcasts |
| Cable TV | Streaming services |
| Taxis | Ride-sharing, bikes, public transit |
| Hotels | Airbnb, corporate housing |
| Consultants | Software, DIY templates |

#### Defending Against Substitutes
- Improve price-performance ratio
- Create switching costs
- Add unique value substitutes can't match
- Acquire or partner with substitutes
- Position as premium alternative

---

### Industry Attractiveness Assessment

After analyzing all five forces, determine overall industry attractiveness:

| Profile | Characteristics | Strategic Implication |
|---------|-----------------|----------------------|
| **Attractive** | Weak forces across the board | Enter/invest, potential for strong profits |
| **Moderately Attractive** | Mixed forces | Selective entry, focus on positioning |
| **Unattractive** | Strong forces across the board | Avoid or find niche, low profit potential |

#### Profitability Spectrum

```
ATTRACTIVE                                    UNATTRACTIVE
(Higher profits)                              (Lower profits)
     |                                              |
Commercial aircraft ←―――――――――――――――→ Fast food
Pharmaceuticals    ←―――――――――――――――→ Retail grocers
Enterprise SaaS    ←―――――――――――――――→ Commodity trading
```

---

### Competitor Profiling

Beyond industry forces, analyze specific competitors:

#### Competitor Profile Template

| Dimension | Questions |
|-----------|-----------|
| **Overview** | Who are they? Size, history, ownership? |
| **Products/Services** | What do they offer? Key features? |
| **Target Market** | Who do they serve? Segments? |
| **Positioning** | How do they position? Messaging? |
| **Pricing** | Price points? Model? |
| **Strengths** | What are they great at? |
| **Weaknesses** | Where do they struggle? |
| **Strategy** | What's their apparent strategy? |
| **Recent Moves** | New products, partnerships, hires? |

#### Competitive Intelligence Sources

| Source Type | Examples |
|-------------|----------|
| **Public filings** | Annual reports, SEC filings, press releases |
| **Website/content** | Pricing pages, blog, case studies |
| **Job postings** | Reveals priorities, tech stack, expansion |
| **Social media** | Company pages, employee posts |
| **Reviews** | G2, Capterra, Glassdoor, Trustpilot |
| **Customer interviews** | Win/loss analysis, churned customers |
| **Industry reports** | Analyst reports, market research |
| **Events/conferences** | Presentations, booth messaging |

---

### Strategic Positioning Options

Based on your analysis, consider positioning strategies:

| Strategy | Description | Best When |
|----------|-------------|-----------|
| **Cost Leadership** | Lowest cost producer | Scale advantages, commodity market |
| **Differentiation** | Unique value proposition | Can sustain uniqueness |
| **Focus (Cost)** | Low cost in niche segment | Niche has distinct needs |
| **Focus (Differentiation)** | Unique value in niche | Niche underserved |

#### Finding Positioning Gaps

Look for areas where:
- Customer needs are unmet
- Competitors have weaknesses
- Your strengths align with opportunity
- Forces are favorable

---

## Examples

### Example 1: SaaS Project Management Tool

**Context:** Startup considering entering project management software market

**Industry Definition:** Cloud-based project management software for SMBs

**Five Forces Analysis:**

| Force | Assessment | Rating |
|-------|------------|--------|
| **Rivalry** | Extremely high—Asana, Monday, Notion, ClickUp, etc. Constant feature releases, price competition | HIGH |
| **New Entrants** | Moderate—Low capital requirements but network effects and switching costs protect incumbents | MEDIUM |
| **Supplier Power** | Low—Cloud infrastructure (AWS, GCP) is commoditized | LOW |
| **Buyer Power** | High—Many alternatives, low switching costs, free tiers available | HIGH |
| **Substitutes** | High—Spreadsheets, email, Slack, Trello (freemium) | HIGH |

**Overall Industry Attractiveness:** LOW - Very competitive with strong buyer power and many substitutes

**Strategic Implications:**
- General PM market is unattractive
- Need differentiated positioning to succeed
- Options:
  1. **Vertical focus:** PM for specific industry (construction, agencies, healthcare)
  2. **Unique capability:** AI-native, specific methodology (Agile, OKRs)
  3. **Integration play:** Deep integration with specific ecosystem

**Recommended Positioning:**
Focus on underserved vertical (e.g., "Project management built for creative agencies") where:
- Buyer power is lower (fewer alternatives serve niche needs)
- Differentiation is sustainable (industry-specific features)
- Word-of-mouth is concentrated (industry networks)

---

### Example 2: Direct-to-Consumer Coffee Brand

**Context:** Evaluating market entry for premium DTC coffee subscription

**Industry Definition:** Direct-to-consumer specialty coffee subscription (US market)

**Five Forces Analysis:**

| Force | Assessment | Rating |
|-------|------------|--------|
| **Rivalry** | High—Blue Bottle, Trade, Atlas, Driftaway, plus local roasters | HIGH |
| **New Entrants** | High threat—Low barriers, minimal capital, e-commerce accessible | HIGH |
| **Supplier Power** | Moderate—Quality beans require relationships, but multiple origins | MEDIUM |
| **Buyer Power** | High—Many options, easy cancellation, price-sensitive | HIGH |
| **Substitutes** | Very high—Supermarket coffee, local cafes, instant coffee | VERY HIGH |

**Overall Industry Attractiveness:** LOW - Highly competitive commodity market

**Competitor Landscape:**

| Competitor | Positioning | Strength | Weakness |
|------------|-------------|----------|----------|
| **Blue Bottle** | Premium, artisanal | Brand, quality | Price, accessibility |
| **Trade Coffee** | Discovery, variety | Selection, tech | Generic brand |
| **Atlas Coffee** | World exploration | Unique experience | Niche appeal |
| **Local roasters** | Authentic, local | Community, freshness | Scale, convenience |

**Positioning Gap Identified:**
- **Underserved need:** Busy professionals who want premium coffee but zero effort
- **Current options:** Either require grinding/brewing skill OR sacrifice quality

**Recommended Positioning:**
"Autopilot premium" - Ultra-convenient premium coffee for busy professionals
- Pre-ground for specific brewing methods (not beans)
- Optimal freshness timed delivery
- Simple subscription (one choice, auto-adjusted)
- Position against: "You don't need to be a coffee snob to drink great coffee"

---

## Checklists & Templates

### Five Forces Analysis Template

```
INDUSTRY: ____________________
DATE: ____________________

FORCE 1: COMPETITIVE RIVALRY
━━━━━━━━━━━━━━━━━━━━━━━━━━━
Key competitors:
1. ____________________
2. ____________________
3. ____________________

Assessment:
□ Number of competitors: Few / Several / Many
□ Industry growth: High / Stable / Declining
□ Product differentiation: High / Moderate / Low
□ Exit barriers: Low / Moderate / High
□ Fixed costs: Low / Moderate / High

RIVALRY INTENSITY: □ Low □ Medium □ High

FORCE 2: THREAT OF NEW ENTRANTS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Barriers to entry:
□ Capital requirements: High / Moderate / Low
□ Economies of scale: Strong / Moderate / Weak
□ Brand loyalty: Strong / Moderate / Weak
□ Switching costs: High / Moderate / Low
□ Distribution access: Difficult / Moderate / Easy
□ Regulatory barriers: High / Moderate / Low

ENTRY THREAT: □ Low □ Medium □ High

FORCE 3: SUPPLIER POWER
━━━━━━━━━━━━━━━━━━━━━━━
Key suppliers/inputs:
1. ____________________
2. ____________________

Assessment:
□ Number of suppliers: Many / Several / Few
□ Uniqueness of inputs: Commodity / Specialized / Unique
□ Switching costs: Low / Moderate / High
□ Forward integration threat: Low / Moderate / High

SUPPLIER POWER: □ Low □ Medium □ High

FORCE 4: BUYER POWER
━━━━━━━━━━━━━━━━━━━━
Key buyer segments:
1. ____________________
2. ____________________

Assessment:
□ Buyer concentration: Fragmented / Moderate / Concentrated
□ Purchase volume: Small / Moderate / Large
□ Product differentiation: High / Moderate / Low
□ Switching costs: High / Moderate / Low
□ Price sensitivity: Low / Moderate / High

BUYER POWER: □ Low □ Medium □ High

FORCE 5: THREAT OF SUBSTITUTES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Key substitutes:
1. ____________________
2. ____________________

Assessment:
□ Price-performance of substitutes: Poor / Comparable / Better
□ Switching costs: High / Moderate / Low
□ Buyer willingness to switch: Low / Moderate / High

SUBSTITUTE THREAT: □ Low □ Medium □ High

OVERALL INDUSTRY ATTRACTIVENESS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
□ Attractive (weak forces)
□ Moderately attractive (mixed forces)
□ Unattractive (strong forces)

KEY STRATEGIC IMPLICATIONS:
1. ____________________
2. ____________________
3. ____________________
```

### Competitor Profile Template

```
COMPETITOR: ____________________
LAST UPDATED: ____________________

OVERVIEW
━━━━━━━━
Company type: ____________________
Founded: ____________________
Size (employees/revenue): ____________________
Funding/ownership: ____________________

PRODUCT/SERVICE
━━━━━━━━━━━━━━━
Core offering: ____________________
Key features: ____________________
Pricing: ____________________
Target market: ____________________

POSITIONING
━━━━━━━━━━━
Tagline/messaging: ____________________
Key differentiator: ____________________
Brand perception: ____________________

SWOT SUMMARY
━━━━━━━━━━━━
Strengths:
• ____________________
• ____________________

Weaknesses:
• ____________________
• ____________________

RECENT ACTIVITY
━━━━━━━━━━━━━━
□ New product launches: ____________________
□ Partnerships: ____________________
□ Key hires: ____________________
□ Funding/acquisitions: ____________________

STRATEGIC IMPLICATIONS FOR US
━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Opportunity: ____________________
Threat: ____________________
Action: ____________________
```

### Quick Industry Assessment Checklist

Before deep analysis, quick gut-check:

- [ ] Can you name 5+ significant competitors?
- [ ] Have new players entered in the last 2 years?
- [ ] Are prices stable or declining?
- [ ] Do customers frequently switch providers?
- [ ] Are there major technology shifts affecting the industry?
- [ ] Do a few large buyers dominate purchasing?
- [ ] Are there obvious substitutes customers use?

If most answers are "yes," expect a challenging competitive environment.

---

## Skill Boundaries

### What This Skill Does Well
- Structuring audio production workflows
- Providing technical guidance
- Creating quality checklists
- Suggesting creative approaches

### What This Skill Cannot Do
- Replace audio engineering expertise
- Make subjective creative decisions
- Access or edit audio files directly
- Guarantee commercial success

## References

**Primary Sources:**
- Porter, Michael E. "How Competitive Forces Shape Strategy." Harvard Business Review, 1979.
- Porter, Michael E. "Competitive Strategy." Free Press, 1980.
- Porter, Michael E. "On Competition." Harvard Business Review Press, 2008.

**Additional Resources:**
- Harvard Business School Institute for Strategy and Competitiveness
- "Understanding Michael Porter" by Joan Magretta

---

## Related Skills

- **competitive-moats** - Building sustainable competitive advantages (7 Powers)
- **value-proposition-canvas** - Designing customer value fit
- **positioning-dunford** - Positioning your product effectively
- **pricing-strategy** - Pricing based on competitive dynamics
- **category-design** - Creating new market categories