What is Competitive Intelligence?
Competitive intelligence is the outcome of the efforts undertaken by a company to collect and analyze data and information about its business environment, competitors, and the products and services provided by those competitors. Competitive intelligence is developed in a company by uncovering its competitor’s marketing strategies and analyzing its products for the sake of better growth and innovation.
The research methodology undertaken to gain intelligence includes collecting data, analyzing it, and taking concrete measures in light of the forecast provided by the data collected. The next step involves testing the hypothesis and drawing results and conclusions.
Why is Competitive Intelligence important for business?
1. Competitive differentiation strategy
Performing analysis of the data gathered to acquire competitive intelligence helps you in creating a competitive intelligence strategy. This strategy gives all insights into what other companies are offering.
2. Ensuring success
Competitive market analysis is imperative for a company’s success. Through accurate insights about the company’s market competitors, it leads to a distinct role of the company and a better understanding of the buyer needs and expectations.
3. Predicting future moves
The companies and enterprises have to evolve and invest in innovation with time to align with the changing buying patterns other they are left behind in the contemporary competitive market. Therefore, competitive intelligence should be built in the first place.
4. Better and evidence-based decision-making
Through acquiring competitive intelligence, companies are no more relying on weak predictions and guesses. They can now make better decisions and bridge gap within their businesses.
How Competitive Intelligence can help you in scaling up your business?
1. Understanding the competitive environment
Competitive analysis helps in understanding the opportunities and challenges presented by the competitors. It is a kind of long-term focused strategic intelligence that uses data and information to develop effective and efficient business strategies.
2. Boosting the capabilities to improve products and services
This kind of intelligence developed by a company helps in increasing or improving the quality of products and services. A range of measures are needed to boost the business that can be better planned through acquiring competitive intelligence.
3. Discovering new market trends
The intelligence developed helps companies to uncover new trends in the industry and market. It provides extensive research that ca be used to anticipate competitors’ next moves and molding your business practices in alignment with those trends.
4. Internal assessment
While competitive analysis mainly focuses on foreign competitors’ strategies and moves, it also assesses the company’s performance. It guides you to deduct the reasoning about where your company needs more focus and energy. It provides regular insight into where you are heading with your current business strategies.
5. Improving marketing and investment tactics
Competitive intelligence enables companies to make informed decisions about where to invest to expand their business. The main focus of competitive intelligence is to develop the ability to make forward-looking decisions to be the market leader.