When to use it

Use this prompt when you are positioning a new product, updating your website messaging, preparing a pitch or deciding which features to build. It suits founders, product managers, marketers and small business owners. The best moment is after you have done some homework, such as reading competitors’ pricing pages, trying their products and collecting reviews, and need to make sense of it. It is also a good exercise before a sales hire joins, so they learn how you compare from day one.

How to customize it

  • [MY PRODUCT] should name the customer as well as the offer. Competitors differ depending on whom you are selling to.
  • [COMPETITORS] should include indirect alternatives. For many products, the strongest competitor is a spreadsheet, an agency or doing nothing.
  • [CRITERIA] should come from customers, not from your feature list. Interviews, reviews and lost-deal notes are good sources.
  • [RESEARCH NOTES] are the evidence base. Label them by competitor and include the date you collected them.

Why it works

A grid makes comparison concrete: every competitor is judged on the same criteria. Including your own product in the grid and asking for an honest “clearly worse” section pushes against the common habit of comparing only on your strengths.

The prompt keeps the analysis tied to your notes because pricing and features change frequently, and a model’s memory of them may be out of date or wrong. “UNKNOWN” entries make research gaps visible. The gaps and positioning steps move from description to decision: they show where you might win, in a format you can test with customers, ads or a landing page.

Tips and variations

  • Add a column for “How they describe themselves” using the exact words from each competitor’s homepage; repeated phrases across competitors show you which messages are already crowded and hard to own.
  • Repeat the exercise every quarter and keep the old grids; changes over time are often more revealing than a single snapshot.
  • Ask for a one-slide summary for your team or investors.
  • Turn the strongest positioning statement into ads with our ad copy variants for A/B testing prompt.
  • Our guide on evaluating an AI tool before switching shows a similar comparison method applied to software.