If you are new to SEO then here's basic method for analyzing your competitors backlinks and see how they have out ranked you. There are several free tools out there which helps you to do this. Here are few which are simple and easy to use,
This probably the best and most easy tool. You don't need to know rocket science to understand its link report. First thousand 1000 search are free.Code:www.opensiteexplorer.org
Another tool to use along with opensitexplorer. Also known as another great seo tool for analyzing links.Code:www.majesticseo.com
Code:http://www.linkdiagnosis.com/
Few factors you should be looking at,
- How many backlink they have
- Where are backlinks from
- their anchor text strategy
- Domain Authority
Understanding what your competitor is doing but you don't is good way to start your ranking wars. It maybe not you get past him but will help you to out rank others and get close to top.