Competitive analysis used to mean hours of Googling, tab-hoarding, and manually building comparison spreadsheets that were outdated by the time you finished them. Most business owners just skipped it and hoped for the best.
With AI, you can run a thorough competitive analysis in under an hour — and walk away with actual, actionable insights instead of a pile of raw data you never look at again. Here's exactly how to do it.
What a Good Competitive Analysis Actually Tells You
Before you open ChatGPT, be clear on what you're trying to find out. A good competitive analysis answers:
- Who are my actual competitors (direct and indirect)?
- What are they doing well that I'm not?
- What gaps exist in the market that I could own?
- What language does my audience use when talking about this space?
- How should I position myself differently?
The prompts below walk you through each one.
Step 1: Map Your Competitive Landscape
Prompt 1 — Competitive Landscape
I run a [TYPE OF BUSINESS] that helps [TARGET AUDIENCE] with [CORE OFFER]. My price point is [PRICE RANGE].
Who are my main competitors — both direct (same offer, same audience) and indirect (different approach, same problem)? For each, give me: their name/type, how they position themselves, their estimated price range, and their likely biggest weakness. Format this as a table.
✱ AI's competitive knowledge has a knowledge cutoff, so verify specific claims. But it's excellent for mapping the landscape and identifying positioning patterns.
Step 2: Analyze Your Audience's Language
This is the step most people skip — and it's the most valuable one. The exact words your customers use to describe their problem are the words your marketing should use.
Prompt 2 — Voice of Customer Mining
I'm selling [PRODUCT/SERVICE] to [AUDIENCE]. Imagine you're a [TARGET CUSTOMER].
What would you type into Google when you first realize you have this problem? List 10 exact search queries — written the way real people search, not keyword-optimized.
Then: what would you type when you're actively looking for a solution? List 10 more.
Finally: what phrases would you use to describe your frustration to a friend? List 5 verbatim examples.
✱ Paste these phrases directly into your sales copy, ads, and website. This is how you speak your customer's language without guessing.
Step 3: Find the Gaps
Prompt 3 — Market Gap Analysis
Based on the competitive landscape for [YOUR NICHE/INDUSTRY], where are the underserved audiences or unmet needs? Specifically:
1. Which customer segments are currently being ignored or underserved by most competitors?
2. What complaints or frustrations do customers in this space commonly have with existing solutions?
3. What could a new or growing business do differently to stand out — not just on price, but on positioning, delivery, or audience specificity?
Be specific and practical, not generic.
Step 4: Build Your Positioning Statement
Prompt 4 — Positioning Framework
Help me write a positioning statement for my business. Here's the context:
- What I sell: [DESCRIBE]
- Who I serve: [SPECIFIC AUDIENCE]
- Their main problem: [THE PAIN]
- My unique approach: [WHAT MAKES YOU DIFFERENT]
- What competitors typically offer: [COMMON APPROACH IN YOUR SPACE]
- My proof/credibility: [EXPERIENCE, RESULTS, BACKGROUND]
Write 3 different positioning statements: one focused on the audience, one focused on the outcome, and one focused on what makes me different. Each should be 2 sentences maximum.
Step 5: Stress-Test Before You Commit
Prompt 5 — Devil's Advocate
Here is my current positioning for my business: [PASTE YOUR POSITIONING STATEMENT].
Play devil's advocate. Tell me:
1. The three biggest weaknesses or vulnerabilities in this positioning
2. Which competitors could easily copy or undercut this
3. What a skeptical potential customer would say when they first read it
4. How I could strengthen the positioning to address these risks
Be honest — I'd rather hear this now than after I've built everything around it.
✱ This prompt is uncomfortable in the best way. It surfaces blind spots before they become expensive mistakes.
What to Do With All of This
Don't let this analysis live in a chat window. After running these prompts, spend 15 minutes pulling out your three most important findings and writing them down somewhere you'll actually see them.
The one thing that changes everything
Most businesses lose to competitors not because their product is worse, but because their positioning is generic. "I help entrepreneurs grow their business" is noise. "I help Airbnb hosts build a brand around their properties so they're not 100% dependent on the algorithm" is signal. AI helps you find that level of specificity faster than anything else.
Ready to go deeper?
Market research is just one chapter.
The Profit Accelerator Playbook covers competitive research, sales copy, content, SOPs, financial clarity, and 7 more workflows — all with copy-paste prompts built for business owners, not analysts.
Get the Playbook →
Also available: Everyday AI Guide · AI Agent Guide