Over 90% of mobile apps fail within their first year—and poor competitor analysis is one of the biggest culprits. I've been working with app development for nearly a decade now, and I can't tell you how many brilliant ideas have crashed and burned simply because the founders didn't bother to look at what was already out there. They built something amazing in isolation, only to discover they were competing against giants with million-pound marketing budgets.
App competitor analysis isn't just about seeing who else is doing what you're doing; it's about understanding the entire playing field before you step onto it. When we talk about mobile app market research, we're really talking about intelligence gathering. What features are working? What price points are users accepting? Where are the gaps that your app could fill?
The best app ideas aren't necessarily the most original—they're the ones that solve problems better than anyone else is currently solving them
This is where feasibility competitive intelligence becomes absolutely critical to your app's success. You might have the most innovative concept in the world, but if you don't understand your competitive landscape, you're flying blind. App market positioning, feature differentiation, pricing strategies—these all depend on knowing what your competitors are doing right and where they're falling short. Throughout this guide, we'll walk through the exact steps you need to take to analyse your competition properly, from identifying who you're really up against to mining user reviews for insights that could shape your entire product strategy.
Understanding Your Competition
Right, let's talk about something that makes or breaks app projects—knowing who you're up against. I've watched countless brilliant app concepts crash and burn because the founders thought they were the only ones solving a particular problem. Spoiler alert: you're probably not!
Competition analysis isn't about copying what others are doing; it's about understanding the playing field you're entering. Think of it as doing your homework before sitting an exam. You wouldn't walk into a maths test without knowing what topics might come up, would you?
Why Competition Analysis Matters
Here's the thing—every app category has competition, even if it doesn't look obvious at first glance. Your meditation app isn't just competing with other meditation apps; it's competing with YouTube videos, podcasts, and even that person's evening jog. Understanding this broader competitive landscape helps you position your app properly and identify real opportunities.
The mobile app market is saturated. There are millions of apps across different stores, and users have become incredibly picky about what they download and keep on their devices. They'll compare your app to others within seconds of discovering it.
What You'll Learn From Your Competitors
Competition research reveals gaps in the market, shows you what features users expect as standard, and helps you understand pricing expectations. It also prevents you from making the same mistakes others have made—saving you time and money.
- Market gaps and opportunities
- Standard feature expectations
- User pain points and complaints
- Successful marketing approaches
- Common pricing models
- Design patterns that work
Identifying Direct and Indirect Competitors
When you're doing app competitor analysis, you need to understand that competition comes in two flavours: direct and indirect. Direct competitors are the obvious ones—apps that do exactly what yours does, targeting the same users with nearly identical solutions. If you're building a fitness tracking app, other fitness trackers are your direct competition.
But here's where it gets interesting (and where most people stop looking when they shouldn't). Indirect competitors are apps that solve the same problem but in completely different ways. Sticking with our fitness example, your indirect competitors might include YouTube fitness channels, personal trainer booking apps, or even meditation apps if your focus is on wellness.
Finding Your Direct Competitors
Start with app store searches using your main keywords. Look at the top results and download the apps that seem most similar to yours. Pay attention to their descriptions, screenshots, and user reviews. This gives you a solid foundation for your mobile app market research.
Uncovering Indirect Competition
This requires broader thinking. Ask yourself: what else might users turn to instead of my app? Social media platforms, web browsers, or even offline solutions could all be stealing potential users. I've seen apps fail because they only looked at direct competitors and missed the bigger picture.
Create a simple spreadsheet with two columns: direct and indirect competitors. Add at least 5-10 apps to each column—this becomes your foundation for deeper feasibility competitive intelligence work.
Don't limit yourself to just apps either. Websites, desktop software, and physical services all count as competition. The goal is understanding every option your potential users have when they face the problem your app solves.
Market Positioning Analysis
Once you've identified your competitors, the next step is understanding where they sit in the market—and more importantly, where you could fit in. Market positioning isn't just about what your competitors are doing; it's about spotting the gaps they've left behind.
Start by looking at how your competitors present themselves. What's their main selling point? Are they positioning themselves as the premium option, the budget-friendly choice, or the feature-packed solution? You'll often find this information right on their app store listings, websites, and marketing materials.
Mapping the Competitive Landscape
Create a simple map of where each competitor sits. Plot them based on key factors like price point, target audience, and core features. This visual exercise—trust me on this—will show you patterns you might miss otherwise. You might discover that everyone's fighting for the same middle ground whilst completely ignoring first-time users or power users.
Finding Your Sweet Spot
Look for these positioning opportunities:
- Underserved user groups that competitors are ignoring
- Price gaps between premium and budget options
- Feature combinations that nobody else offers
- Different approaches to solving the same problem
- Geographic markets with limited competition
The goal isn't to copy what's already working—it's to find where you can be different and valuable. Sometimes the best position is the one nobody else has thought to claim yet. Pay attention to user reviews complaining about what's missing; these complaints often reveal positioning opportunities that are hiding in plain sight.
Feature Comparison Research
Right, let's get into the nitty-gritty of what your competitors are actually offering users. Feature comparison research is where you roll up your sleeves and start mapping out exactly what each competitor app does—and more importantly, what they don't do. This isn't about copying features; it's about understanding the gaps and opportunities in the market.
Start by downloading your competitors' apps and using them properly. Not just a quick scroll through the app store screenshots, but actually signing up, going through onboarding, and testing the core functionality. Make notes about what works well and what feels clunky or confusing. Pay attention to the user journey—how many steps does it take to complete key actions? What features are hidden behind paywalls? Which ones are front and centre?
Core Feature Analysis
Create a simple spreadsheet listing all the main features across your competitor apps. You'll start seeing patterns emerge—certain features that everyone has (table stakes) and others that only one or two apps offer (potential differentiators). Don't forget to note the quality of implementation; sometimes having fewer features done really well beats having loads of mediocre ones.
The goal isn't to build a feature-heavy app that does everything poorly, but to identify what users actually need and do those things brilliantly
Look at feature gaps where competitors are weak or missing obvious functionality. These gaps often represent your biggest opportunities for app market positioning. Sometimes the most successful apps aren't the ones with the most features—they're the ones that solve specific problems better than anyone else.
Pricing and Monetisation Intelligence
Understanding how your competitors make money from their apps is absolutely critical for your own app's success. I've seen too many brilliant apps fail simply because their creators didn't properly research what users are willing to pay for—or how much they're willing to pay.
Start by downloading your competitors' apps and experiencing their monetisation strategies firsthand. Are they using a freemium model where basic features are free but premium ones cost extra? Do they charge a one-off purchase price? Maybe they're running on subscriptions or showing advertisements between content. Some apps combine multiple approaches, which can be quite clever if done right.
Subscription Models and Pricing Tiers
Pay close attention to subscription pricing structures. Many apps offer weekly, monthly, and annual options at different price points. Look for patterns across your competitors—if most charge between £4.99 and £9.99 monthly for premium features, that gives you valuable insight into what users in your market are comfortable paying.
In-App Purchases and Revenue Streams
Don't forget about in-app purchases. Gaming apps might sell power-ups or cosmetic items; productivity apps often sell additional storage or advanced features. Check the app store descriptions and actually use these apps to see how aggressively they promote paid features.
This research isn't about copying what others do—it's about understanding user expectations and market standards. If every competitor offers a free trial period, users will expect that from you too. If most apps in your category cost £2.99, pricing yours at £19.99 might be a tough sell without exceptional value.
User Review Mining
User reviews are like gold dust when you're doing app competitor analysis. They tell you exactly what real people think about your competitors' apps—and more importantly, what they're frustrated with. I spend hours reading through app store reviews because they reveal problems that no marketing material will ever mention.
Start by looking at the most recent reviews for your main competitors. Don't just read the five-star ones; those won't tell you much beyond "great app!" The one and two-star reviews are where the real insights hide. People are brutally honest when they're annoyed, and they'll spell out exactly what's wrong with an app.
What to Look For in Reviews
Focus on patterns rather than individual complaints. If ten people mention the same bug or missing feature, that's valuable intelligence. Pay attention to these key areas:
- Recurring technical issues or crashes
- Features users desperately want but can't find
- Pricing complaints or confusion
- User interface problems or navigation issues
- Customer service experiences
- Comparisons to other apps (including yours, if you have one)
Set up Google Alerts for your competitors' app names plus keywords like "review" or "problems" to catch discussions happening outside the app stores.
Turning Reviews Into Action
Once you've spotted the patterns, you can use this information to position your app better. If users consistently complain that a competitor's app is too complicated, you know there's an opportunity for a simpler solution. If they're begging for a feature that doesn't exist anywhere, you might have found your unique selling point.
Don't forget to check reviews across different regions and languages if you're planning global expansion. What frustrates users in one country might not be an issue elsewhere.
Conclusion
After years of working with clients who skip competitor analysis—and watching them learn the hard way why that's a mistake—I can tell you that tracking your competition isn't just helpful, it's absolutely necessary for app success. The data you gather from studying direct and indirect competitors will shape every major decision you make about your app.
The beauty of competitor analysis lies in how it connects all the dots. When you understand market positioning, you can spot gaps that your app might fill. Feature comparison research shows you what users expect and where you can do things differently. Pricing intelligence helps you find the sweet spot that attracts users without leaving money on the table. User review mining? That's pure gold—real feedback about what people love and hate about existing solutions.
What I find fascinating is how this process often surprises clients. They start thinking they know exactly what their app should do, then discover opportunities they never considered or realise their original idea needs tweaking. That's not failure; that's smart business.
Remember, competitor analysis isn't a one-time task you tick off your list. Markets shift constantly—new apps launch, user preferences change, and features that seemed groundbreaking six months ago become standard expectations. The most successful apps I've worked on treat competitor research as an ongoing activity that informs updates and future development.
Your competitors are doing the hard work of testing ideas in the market. Learn from their successes and failures, then use that knowledge to build something better. That's not copying—that's being clever about how you approach app development.
