A competitor analysis, which is an essential element of corporate strategyis a technique used to assess outside competitors potential and current. The study seeks to identify the strengths and weaknesses of these competitors and use the knowledge gained, to improve endeavors within the company.
Techniques for Analyzing Industries and Competitors which is widely viewed as the foundation of modern competitive intelligence. On the other hand, practitioners and companies regard professional accreditation as especially important in this field.
Global developments have also been uneven in competitive intelligence. It is the first European institution which teaches the tactics of economic warfare within a globalizing world. In Germanycompetitive intelligence was unattended until the early s.
The term "competitive intelligence" first appeared in German literature in In summer the Institute for Competitive Intelligence was founded, which provides a postgraduate certification program for Competitive Intelligence Professionals. Most firms today realize the importance of knowing what their competitors are doing and how the industry is changing, and the information gathered allows organizations to understand their strengths and weaknesses.
One of the major activities involved in corporate competitive intelligence is use of ratio analysisusing key performance indicators KPI. Organizations An analysis of an article on competitive intelligence annual reports of their competitors on certain KPI and ratios, which are intrinsic to their industry.
This helps them track their performance, vis-a-vis their competitors. The actual importance of these categories of information to an organization depends on the contestability of its markets, the organizational culture, the personality and biases of its top decision makers, and the reporting structure of competitive intelligence within the company.
Generally, it is the type of information that you would need to support the sales process in an organization. Product — what are people selling?
Price — what price are they charging? Promotion — what activities are they conducting for promoting this product? Place — where are they selling this product? Other — sales force structure, clinical trial design, technical issues, etc. Examples of competitive intelligence research is evident in daily newspapers, such as the Wall Street JournalBusiness Weekand Fortune.
They use information to plan their own marketing, pricing, and production strategies. Resources, such as the Internet, have made gathering information on competitors easy. With a click of a button, analysts can discover future trends and market requirements.
However competitive intelligence is much more than this, as the ultimate aim is to lead to competitive advantage. As the Internet is mostly public domain material, information gathered is less likely to result in insights that will be unique to the company.
In fact there is a risk that information gathered from the Internet will be misinformation and mislead users, so competitive intelligence researchers are often wary of using such information.
As a result, although the Internet is viewed as a key source, most CI professionals should spend their time and budget gathering intelligence using primary research—networking with industry experts, from trade shows and conferences, from their own customers and suppliers, and so on.
Where the Internet is used, it is to gather sources for primary research as well as information on what the company says about itself and its online presence in the form of links to other companies, its strategy regarding search engines and online advertising, mentions in discussion forums and on blogs, etc.
Also, important are online subscription databases and news aggregation sources which have simplified the secondary source collection process. Social media sources are also becoming important—providing potential interviewee names, as well as opinions and attitudes, and sometimes breaking news e.
Organizations must be careful not to spend too much time and effort on old competitors without realizing the existence of any new competitors.
Knowing more about your competitors will allow your business to grow and succeed. The practice of competitive intelligence is growing every year, and most companies and business students now realize the importance of knowing their competitors.
According to Arjan Singh and Andrew Beurschgens in their article in the Competitive Intelligence Review, there are four stages of development of a competitive intelligence capability with a firm. It starts with "stick fetching", where a CI department is very reactive, up to "world class", where it is completely integrated in the decision-making process.
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May Learn how and when to remove this template message The technical advances in massive parallel processing offered by the Hadoop " big data " architecture has allowed the creation of multiple platforms for named-entity recognition such as the Apache Projects OpenNLP and Apache Stanbol.
The former includes pre-trained statistical parsers that can discern elements key to establishing trends and evaluating competitive position and responding appropriately.
This occurs in an automated fashion on massive marketplaces such as Amazon. Similar fields[ edit ] Competitive intelligence has been influenced by national strategic intelligence.
Although national intelligence was researched 50 years ago, competitive intelligence was introduced during the s. Competitive-intelligence professionals can learn from national-intelligence experts, especially in the analysis of complex situations.Competitive intelligence is the act of collecting and analyzing actionable information about competitors and the marketplace to form a business strategy.
. Competitive intelligence (CI) is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors, and any aspect of the environment needed to support executives and managers in strategic decision making for an organization..
CI means understanding and learning what is happening in the world outside the business to increase one's competitivity. Leveraging patent landscape analysis and IP competitive intelligence for competitive advantage. An effective competitive analysis requires selecting the right companies to compare, and analysing relevant aspects of their organization, their customer acquisition process, and their products.
Competitive analysis or competitive research is a field of strategic research that specializes in the collection and review of information about rival firms.
It 's an essential tactic for finding out what your competitors are doing and what kind of threat they present to your financial well-being. Read this article to know about competitor analysis, difference between competitor analysis and competitive intelligence, approaches and examples. c l e v e r i s m c l e v e r i s m.