Competitive Intelligence or the Power of Information
What is Competitive Intelligence?
Competitive Intelligence: It is a structured, legal and ethical process designed to collect, analyze and disseminate data or information about current and potential competitors. The key is transforming the collected data into useful information for making decisions. It means that truthful, timely, and accurate information is provided to those who make decisions.
Business intelligence is the ability to collect, analyze and use information about competitors, customers, and other market factors that contribute to a company’s competitive advantage. Competitive intelligence is critical because it helps companies understand their competitive landscape and the opportunities and challenges. In addition, businesses analyze information to develop effective and efficient business practices.
What to Highlight About Competitive Intelligence
- Competitive intelligence is the ability to collect and use information about factors that affect a company’s competitive advantage.
- Organizations analyze the information and data to develop effective and efficient business practices.
- Competitive intelligence can be classified as myopic-oriented, tactical intelligence, or long-term focused strategic intelligence.
- It also focuses on collecting data, and information is more complex than performing a simple Internet search.
Why is Competitive Intelligence Important?
Threats no longer come only from nearby. Example Understanding the culture of the competitor company and the environment from which it comes helps us anticipate its behavior. Of course, this type of analysis is carried out considering many variables, such as the Hofstede index.
- Rapid Technological Development
Despite the implementation of total quality systems that require maintaining very demanding standards, it is always difficult to define a rate of progress in these markets, which we can use to describe our objectives. The study of the audiovisual assets of the competition will be of great help. Example: Portfolios, etc.
- Mergers And Acquisitions Between Competitors
Intelligence at this level reaches a higher degree of complexity than in the product or process field. However, many entrepreneurs may find this information very useful to determine critical variables such as the critical mass they have to achieve.
Advantages of Competitive Intelligence
By definition, competitive intelligence brings together actionable information from various published and unpublished sources, collected efficiently and ethically. Ideally, a company successfully employs competitive intelligence by cultivating a sufficiently detailed picture of the market to anticipate and respond to challenges and problems before they arise.
Competitive intelligence goes beyond the simple “know your enemy” cliché. Instead, it is an exercise in deep analysis, in which companies uncover the finer points of a competitor’s business plans, including the customers they serve and the markets in which they operate.
For example, a sales rep might refer to tactical advice on how best to bid on a lucrative contract. For top management, it can mean cultivating unique marketing skills used to gain market share against a formidable competitor.
What Functions does Competitive Intelligence Have?
1. Anticipate the Actions of Competitors
Identifying the competition’s strengths and weaknesses will help you anticipate their initiatives. In addition, identifying the early signals from your competitors will help you judge the severity of the threat and develop a quick and effective response.
For example, your competitor opens a selection process for the area of operation. Is he getting more clients? Or are you going to open another line of business? We will carefully analyze the profile you request and the position conditions to find out.
2. Analyze Industry Trends
If management can identify convergences between new technologies and also operating procedures, it is possible to stay far ahead of the competition and Technologies like Big Data can be beneficial here.
Example: Suppose that for some years, there has been a tendency to launch mobile apps based on traditional games but with updated graphics, and all major publishers have one also if we see that this trend exists and there is a reasonably relevant publisher that does not have any, it is likely preparing it.
3. Learning and Innovation
Therefore. Competitive intelligence offers many learning opportunities. Therefore, first, it forces managers to keep an eye on the environment. Also we can adapt our product or service by analyzing and reviewing our competition, innovating, and developing new and better offerings.
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