Competition breeds the best results. To be successful, you can’t be afraid to study and learn from your competitors. After all, they may be doing something right that you can implement in your business to make more money.
How you analyze competition will vary between sectors. If you're a restaurant owner, you may simply be able to dine at your competition's restaurants, ask other customers what they think, and gain information that way. However, you could be a company with much more limited access to your competitors, such as a chemical company. In that case, you would work with a business professional and accountant to go over not just what the business presents to the world, but any financial information you may be able to get on the company as well.