I have 2 setups:

Setup 1: Clipper blade: H3 Neo Max thickness, Mark V Max thickness

Setup 2: Dawei Genote Quattro X blade: 2008 XP 1.8 mm thickness both sides.

Setup 1 is obviously faster and spinnier. However I lose a bit of control. Mark V is a softer sponge and is more reactive to incoming spin however it is easier to loop.

Setup 2 is a bit slower and less spinnier. However it has more control easier to lift heavy spin serves and easier to hit flat shots and put more balls on the table.

Setup 1 had been my primary setup however off late I recently tried playing with Setup 2 and found that I was able to beat a few higher level players which I had failed to come close with Setup 1. So I have now switched to Setup 1 for my matches and during training I play with a faster Setup 2.

My question is how can I use these setups to my advantage. Which setup would be advantageous against which style of player and equipment. Also which setup is better for me to improve my own game? 

If solely improving isn't really your goal, go ahead and play with both. Messing with setups can be fun but it's definitely not helpful to gaining skill and technique.

From experience, I would say that setup 1 would be a bit more difficult to play with properly than setup 2, and that's why I suggested no.1 if you're training/getting coached more. But keep in mind that play long enough with either, and if you aren't just messing around and actually figuring out how to do things properly, you can get good with either.

Though your style may be a determining factor.  As a recovering EJ I will say that while I can certainly use H3 Neo on either side it doesn't really help my game.  My game is best served with two non-tacky rubbers that punish opponents whose ball is too high and whose bodies are out of position, i.e. placement and faster strokes.

Two of my clubmates are heavy, devastating 3rd ball attackers and both use H8 on the forehand.  When I try to play their style of game I can win at times, but its a lot more work, less fluid and I think about looping too much (which obviously can be remedied by training).  When I play with two non-tackies they really struggle because I just play the ball and really focus on placement.  So maybe your style is something to consider.

I probably haven't been playing as long as most people on here, but those are my observations after experimenting with many types of setups over three years.  I hope it helps!