Here is a list of items you'll want to have to prepare for this section. Some of the tools described in this play will make your job extremely easy, however I'm going to point out some manual methods you can do as well. Its important to give yourself a routine reminder every 3 months to check the rankings of your competitor using these keywords. Unfortunately, there isn't any website I've come across that has you constantly monitor your competitors in terms of SEO. I know a bunch of companies that handle Social Media Marketing spying are starting to sprout up, and that will probably be the next big craze in marketing analysis software.
Anyway, these resources will help you because the competition can be useful to not only see what they are constantly doing for website ranking of particular keywords, you can also determine some new keywords that you might want to try to implement into your link building software.
1. Google Doc (see Attached) - List your True Competitors
2. SEM Rush (see Sample Report) - This site will show you every keyword your competitor will rank for, allowing you to revise your results and piggyback the work they've already put in.
3. SEO Moz - Using SEO Moz's Link Analysis, you can add your potential competitors into this section to see exactly how much SEO they really engage in. Typically when I'm doing Link Analysis comparisons, I'll add 2 close competitors that we can try to beat within 6-10 months, and then I'll add a third competitor that is doing full on SEO that is probably two years away from getting caught up. This is important to show investors that you can reach attainable goals, but it doesn't stop there. SEO is a constant process and if you stop, it will trickle down and these True Competitors will continue to dominate.