Competitive Intelligence Essay Example

intelligence is a crucial tool for businesses to identify risks and opportunities in the market and make informed decisions. The process of competitive intelligence involves planning and focus, collection, analysis, communication, process and structure, as well as organizational awareness and culture (Wadded, 2012).

The initial stage of the process, which is planning, involves determining the exact demand in order to gather accurate information. Fay (2007) outlines five strategic areas that an intelligence researcher should focus on: identifying opportunities in uncommon places, assessing threats from competitors, evaluating risks from the competition, identifying major vulnerabilities, and addressing assumptions. The second stage focuses on collecting information from various sources, including primary and secondary sources, using different techniques.

Examples of primary sources include government institutions, company staff, suppliers, customers, and conferences. Some common secondary sources include magazines, TV and radio programs, and analyst reports. The third stage of analysis is the most challenging (Du Kit, 003), as it involves converting the collected information and interpreting it into actionable intelligence. This enables management to make strategic and tactical decisions (Kandahar, 1997; Calf and Miller; Herring, 1998).

Various tools can be used for analyzing the information, such as PEST (Political, Economical, Social and Technological) analysis, Porter's Five Forces Model, SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, and competitor profiling.

The analysis phase of the competitive intelligence process includes activities such as company profiles, competitive benchmarking, market or industry analysis, customer or supplier profiles, technology assessments, daily reports, strategic impact analysis, risk and opportunities bulletin (Wadded, 2012, p.28). Communication involves formatting the intelligence product into a presentable form, such as a report, dashboard, or meeting, before sharing it with those who have

the authority and responsibility to act on the findings (Bose, 2007). Process and structure highlight the importance of having appropriate policies, procedures, and infrastructure for employees to contribute. Organizational awareness and culture are also key factors in promoting competitiveness and knowledge exchange within a successful organization (Verviers, 2005). The ultimate goal of the competitive intelligence process is to inform strategic decisions and actions based on changes in the competitive environment. Information mastery and knowledge are crucial for business success (Elephantine, 1995; Porter, 1990). Businesses are able to identify intelligence information (Wadded, 2012, p.0).The use of competitive intelligence offers several strategic benefits for enterprises. Firstly, it helps in discovering potential new competitors or clients, which can facilitate the establishment of new businesses. Secondly, it enables the identification of potential technologies, products, and processes that could impact the company. Thirdly, it helps in pinpointing and analyzing political or legislative issues that could potentially affect the company. Lastly, it allows for the evaluation and analysis of competitors, customers, and suppliers, which have the potential to influence the success or failure of the company (Wadded, 2012, p.30).

These benefits can assist companies in quickly revising their strategies and plans to maximize their competitive advantage (Wright and Calf, 2006). Competitive intelligence supports improved business planning, successful introduction of new products, and development in new markets (Daft et al, 1988;DeWitt et al, 1997;Gordon et al, 1989;Porter, 1980). By analyzing competitor capabilities, vulnerabilities, intentions, and actions, it allows companies to proactively anticipate market developments rather than solely react to them.

Consequently, this proactive approach helps companies remain competitive by making better strategic decisions and achieving better performance against their competitors (Bose, 2007). It also

enables companies to establish a defensible position over their competitors (Porter, 1985;Carry and Salvadoran, 2006).Competitive intelligence activities provide executive management with actionable information, enabling them to make strategic decisions and take action to improve a firm's competitiveness and innovation performance (Ferrier, 2001). In summary, competitive intelligence is a strategic management tool that helps companies make informed business decisions in highly competitive markets. It involves monitoring, analyzing, and reacting to market intelligence information in a timely manner to stay ahead of competitors. Additionally, competitive intelligence helps companies become aware of external factors such as politics and economics that could potentially impact their current and long-term business.