Purpose: These days, many small and medium sized companies have research for the enhancement of the competitiveness of products and services. However, many companies are not taking into account the current state of market. In particular, small and medium sized companies do not consider the relationship of competitiveness between the market and the product. For this reason, they do not establish a comprehensive competitive strategy. Thus, in this paper, considering the product life cycle and competitiveness, we studied methods for dynamic competitiveness analysis. Methodology/Approach: In the paper, we reviewed about competitiveness power for small and medium sized companies. We also analyzed main factors for enhancement of competition. In addition to this, we studied the competitiveness analysis method of product through literature review about product life cycle. Findings: In this paper, through the research, we studied analytical methods for the competitiveness of small and medium sized companies. The results of this study are able to help develop new product strategy plans for small and medium sized companies. Originality/Value: Many small and medium sized companies consider their company``s technological capabilities as a key competitive factor. However, a study about competitive strategy considering the needs and product life cycle of the market did not seem to reflect this. Thus, this research provides a competitive strategy for small and medium sized companies.