Everything You Need to Know about Competitive intelligence
Competitive Intelligence is a practice in Marketing. It is collecting and analyzing information so that managers could strategize effectively. Competitive intelligence is essentially deriving and collecting Intelligence for strategic decision making.
This involves external information as well as internal analysis. Hence, the combined is what gives us the process of Competitive Intelligence. Competitive intelligence is systematic and a detailed process of developing intelligence.
The data is collected and bundled together in order to develop information. This information is analyzed and processed in order to develop intelligence. The assessment of such information is what influences decision making at the highest order.
Why is Competitive Intelligence important?
Competitive Intelligence is what drives strategies both in stable and changing market conditions. So it serves as a guide for decision makers to consider so that a company may achieve its objectives.
Competitive Intelligence helps companies identify future opportunities. These opportunities may arise from changes in the market or business environment. There may be new information that could be capitalized upon. This helps companies improve their business and increase their market share.
It also helps them take action against obstacles that may arise in the future. These obstacles are a threat to business and may impact their market share. Using Competitive Intelligence service to predict these obstacles so that a company may make plans beforehand, serves in favor of the company. This is why competitive intelligence is so useful.
Competitive intelligence helps companies develop strategies in order to achieve their objectives. These objectives may be short-term plans or long term goals.
Countering competition is one of the prime reasons for developing competitive Intelligence. Competition in the market is a continuous threat to business. Every company needs strategies to defeat or stand firm in this competition.
Competitive intelligence probes information regarding competitors in order to develop powerful response strategies. These help businesses to maintain or increase their market shares.
Competitive intelligence enables companies to achieve their objectives. Launching or developing a new product requires intensive understanding of the market. After these products or services are launched, there needs to be a detailed strategy to market them. Competitive Intelligence provides companies with necessary information to develop those strategies.
How is information collected?
Information is collected by putting together relevant data. The data may be secondary or primary. However, this is not your simple google searched data. The data used is of higher quality and better resolution. Research organizations and authorities serve as a distributor of such data.
Moreover, this information is attained by investigations and digging into detailed matters. For example, to understand the customer satisfaction of a particular product or service that is newly launched by a competitor. You interview groups of their buyers in order to understand its performance. You may be able to determine the next decision your competitor may take in order to promote this product.
So you may develop a counter strategy in response to their product. Reviewing customers' point of view about a competitor's product helps you understand what works in the market. You may adapt your product to improve it. Or you may even improve on the branding of your product in order to adapt towards your competitors' innovation.
Companies also interview experts of business, market and products in the industry in order to collect information. Data exists discreetly and needs to be represented usefully so that it may be used to extract conclusions and hypotheses. It is the function of experts to decode such data in order to develop useful information. The interpretation of this information is called intelligence.
Vendors can prove to be very useful in collecting information. These are directly in contact with the industry and know sufficient knowledge about companies involved. They are a good source to collect and gather information about competitors.
Tools for Competitive Intelligence
Competitive intelligence uses tools according to what is required in the situation.
Scenario Planning
There are shifts in the market and changes in the business environment. Companies use scenario planning to tackle such challenges. Participants are divided into teams and each team is given a scenario. The teams then develop strategies to be used by the company.
War Gaming
Individuals presume the role of companies in the market. They then play out how those roles will turn out in those scenarios. This is used to predict competitors moves as events take place. Events like product launches are then introduced into the scenes by a facilitator. Participants then play out their respective strategies which are then used to understand product performance.
Wins and Losses
This is a tool used to determine the reasons and factors for the wins and losses of the company. The evaluation is then presented to clients. This evaluation includes strategic, Market, and tactical strategies.
Trade show intelligence
Trade show intelligence is used when it's not possible to gather information through research. Companies exhibit their products in trade shows. These are usually about particular industries. Companies that gather in trade shows network in order to gain information. This is probably the most efficient cost effective tool for intelligence.
Intelligence platforms
These platforms serve the companies by providing them intelligence about their competitors. They provide competitor assessments. These assessments are according to the current situation. Furthermore they are personalized and used by companies in order to get insights about their competitors.
Competitive intelligence outside Businesses
Competitive Intelligence is used in many disciplines. One of the most prominent examples is sports. Football uses statistics, player performances and skills to develop team strategies. These strategies are worked by many people in different roles. The coaches, the managers, the trainers all work together in order to develop defensive, attacking and neutral strategies.
They use data and statistics in order to understand their strengths and weaknesses. They review player performance in order to identify players that could represent their teams.
Moreover, even Cricket has started using statistical techniques for selection and strategic planning of their teams. This is an example of how Intelligence is utilized so that you may develop the concept as a whole.