If you wanna show up higher than your competitors on Google, you absolutely have to do this.
I'm the founder of a digital marketing agency, and one of the main things we specialise in is SEO. A huge chunk of this work is around content optimisation. When you're optimising your content for your target keywords, you cannot skip competitor analysis, and it's probably one of the easier parts of the process.
All you need to do is Google your target keyword and then open the websites who are ranking in the top 3 results. On each of these pages you wanna look at things like how many times they use the keyword on that page, do they use it in any headings, how many images have they got, do they have any video, what other headings do they use, does it include FAQ’s, and then you take this information to optimise your own content.
So if they include the target keyword in one heading, you can include it in at least two. If they have a video, you should also have a video. If they've got FAQ's, all of this signals to Google that your content is of equal value or higher than theirs to help you secure one of those top spots in Google searches.