A competitor analysis template is a tool that helps you to manage your competitors in the market. The template contains information about the company, its products and services, customer base, geographic reach, and key competitors. The internal factors include company's strategy and objectives, financial resources and management capabilities. The external factors include industry trends, government policies and regulations. The importance of this tool is that it helps you to identify your strengths and weaknesses in comparison with your competitors. It also helps you to determine how you can differentiate yourself from them by avoiding their weaknesses or capitalizing on their strengths.