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Analyse and understand your competitor’s plan of action, their focused keywords and their success rate for those business keywords.
You can find many free online competitive analysis tools and find out the competitor for your specific keyword like its search count, ratios and competitive results, better you can go for Google suggest for finding results
You can find some of the ideas on tools to be used for complete comparison of competitive analysis
(1) Page rank check and their rank distribution through the text navigation link (Note avoid java script for links)
(2) Find out anchor text of inbound links
(3) Back Link Checker, Yahoo Site Explorer for checking link popularity and find out inbound links
(4) Use Alexa to check traffic referrals from other sites
(5) Use keyword ranking tool to track positions of your competitor in search engine by SERP tools
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Jagadeesh Mohan Kumar Nambiar, commonly known as Jag, an SEO, PPC and SMO advisor who has been blogging since 2005, and has been in the field of SEO around 10 years, enjoys helping, teaching and recommends ethical SEO and other Digital Marketing methods.
Jag is a moderator at SEWatch Forums, SERountable Forums, #3 Top pick Google Knol author and Blekko Associate Editor, more about Jag