What is Competitive Intelligence?
Investopedia defines Competitive Intelligence as, “The practice of discovering and analyzing useful information about a competitor business. In a sense, Competitive Intelligence is akin to scouting an opponent in sports; the goal is to find out what the competition does well, what it doesn’t do well and finding a way to exploit information for a competitive advantage. It is the process of collecting and analyzing information about competitors’ strengths and weaknesses in a legal and ethical manner to enhance business decision-making. Competitive intelligence activities can be basically grouped into two main types – 1) Tactical, which is shorter-term and seeks to provide input into issues such as capturing market share or increasing revenues; and 2) Strategic, which focuses on longer-term issues such as key risks and opportunities facing the enterprise. Competitive intelligence [can also mean] different things to different people within an organization. For example, to a sales representative, it may mean tactical advice on how best to bid for a lucrative contract. To top management, it may mean unique marketing insights to gain market share against a formidable competitor. The ultimate end goal of competitive intelligence is to help make better decisions and enhance organizational performance. While most companies can find substantial information about their competitors online, competitive intelligence goes way beyond merely trawling the Internet, on the premise that the most valuable information is seldom – if ever – easily accessible online. A typical competitive intelligence study includes information and analysis from numerous sources. These include the news media, customer and competitor interviews, industry experts, trade shows and conferences, government records and public filings.”
Why do I need Competitive Intelligence?
Smallbusiness.chron.com explains, “Knowledge of your competitors’ projects gives you the edge to continue improving so you are able to set your company apart. This information can serve as a useful tool for planning your own business decisions going forward.” Understanding your competitors from a customers’ perspective, as well as how they operate from a business standpoint are both key in gaining an advantage. Investopedia says, “Businesses can learn a significant amount by acting like a customer of their competitor. This can mean reviewing publicly available information, signing up for products or services or taking tours of a facility. Once a competitor’s information has been collected, it should be critically reviewed.” Smallbusiness.chron.com explains, “Once you know what your competitors are doing, you are better able to plan your company’s next move. You are better able to stay competitive if you can anticipate what similar companies are planning. The competitive intelligence information may confirm that your current direction will keep you competitive. In other cases, you may realize you need to take the company in a different direction based on what competitors are doing.”
Why choose Competitive Analytics to assist with my Competitive Intelligence needs?