But before I do that, I'd want to know what happens when a customer compares both businesses.

I'd look at five things:

1. What problem are we each solving?

2. Who does each business seem to understand better?

3. What promise is each one making?

4. What proof does each one have?

5. Why would a customer choose them instead of us?

This is what makes competitive research useful.

Not copying their Instagram content.

Not changing your prices because they did.

Not running more ads because they're running more ads.

It's about understanding what customers are seeing that you might be missing.

Take two fashion businesses selling similar clothes on Instagram.

One has cheaper prices.

Another makes ordering easier, responds quickly on WhatsApp, shows customers wearing the clothes, and delivers when promised.

They're selling similar products.

But they're not selling the same experience.

That's why competitive analysis should come before panic.

If sales are slowing down, don't immediately say:

"Let's reduce the price."

"Let's run more ads."

"Let's post more."

First ask:

"What is making customers choose the alternative?"

Then go and find out.

Talk to customers.

Read reviews.

Compare their offers.

Go through their buying process.

Look at their messaging.

Then decide what actually needs fixing.

Your competitor isn't always the reason you're losing customers.

Sometimes they're simply showing you what your customers value.

Study the competition to find your opportunity, not to become a copy of them.

Have you ever chosen one business over another selling almost the same thing? What made the difference for you?