SaaS Competitor Analysis:How to Do It Right
Most SaaS teams do competitor analysis wrong—tracking the wrong competitors, copying features, or doing one-time research that's outdated in weeks. Here's the definitive guide.
What Is SaaS Competitor Analysis?
SaaS competitor analysis is the process of understanding who your competitors are, what they offer, how they position themselves, and where the market gaps exist.
But here's what it's NOT:
- It's not a list of competitor features to copy
- It's not stalking competitors on Twitter
- It's not obsessing over every competitor move
Good competitor analysis gives you strategic insights: where you can differentiate, what messaging is overused, where competitors are weak, and what positioning opportunities exist.
It informs your competitive positioning, product roadmap, and go-to-market strategy. Done right, it's one of the highest-leverage activities for early-stage SaaS.
Direct vs Indirect Competitors
Not all competitors are equal. Here's how to categorize them.
Direct Competitors
Solve the same problem, target the same customer, use similar approach
If you're a project management tool for developers, other dev-focused PM tools are direct competitors
These are who customers compare you to first. Your positioning must clearly differentiate against them.
Indirect Competitors
Solve the same problem but for different customers or with a different approach
Generic project management tools, spreadsheets, or specialized tools for adjacent use cases
Customers often consider these as alternatives. You need to articulate why your approach is better for your ICP.
Alternative Solutions
Different ways customers solve the problem without buying software
Building in-house, hiring consultants, manual processes, or doing nothing
The hardest competitor to beat. You must prove buying your software is better than these alternatives.
Common Mistakes in SaaS Competitor Analysis
Avoid these pitfalls that derail most competitor research
❌ Only tracking direct competitors
Customers don't think in categories. They consider all alternatives—including doing nothing. If you only track direct competitors, you miss what actually blocks conversions.
❌ Copying competitor features
Feature parity doesn't create differentiation. If you copy what competitors do, you become a commodity. Customers will choose based on price, not value.
❌ Doing one-time competitor research
Competitors change positioning, add features, adjust pricing. One-time research becomes stale in weeks. You need continuous monitoring, not annual deep dives.
❌ Focusing on what competitors say, not what they deliver
Marketing claims ≠ product reality. Competitors over-promise. If you position based on their claims instead of their actual product, your positioning will be wrong.
❌ Analyzing competitors in isolation
Individual competitor profiles are useful, but positioning insights come from patterns. You need to see the whole competitive landscape—messaging overlaps, pricing clusters, positioning gaps.
Manual vs Automated Competitor Analysis
Both have their place. Here's when to use each.
Manual Analysis
- Deep understanding of specific competitors
- Flexibility to explore unique angles
- Good for initial market research
- Time-intensive (8+ hours per analysis)
- Doesn't scale beyond 3-5 competitors
- Becomes stale quickly
- Prone to bias and missed signals
Use for initial market research or deep-dive on 1-2 key competitors
Automated Analysis
- Fast (5 minutes vs 8+ hours)
- Scales to 10+ competitors easily
- Continuous monitoring and updates
- Surfaces patterns humans miss
- Less contextual depth on individual competitors
- Requires tools like RivalMatrix
Use for ongoing competitive intelligence, positioning analysis, and tracking market changes
Example Analysis
Email Marketing SaaS
Competitive landscape analysis
Competitors Identified
Key Findings
💡 Positioning Opportunity
Whitespace found: Email marketing for technical founders and SaaS companies who want developer-friendly tools, API-first design, and advanced customization.
Recommended positioning: "Email marketing for developers" or "API-first email for SaaS"—avoid "easy" and "powerful" (overused).
This type of analysis is what RivalMatrix delivers automatically. Try our competitive analysis tool for SaaS.