Principles of Competitive Intelligence
Posted: Sun Jan 19, 2025 6:09 am
Here are 10 key principles of competitive intelligence, three of which were formulated by US Army General Washington Platt, one of the most experienced strategists of the 20th century. These principles demonstrate that military strategies can be applied to business, emphasizing that competitive struggle is like real war and its scale is often underestimated. Here are they:
Forming a target orientation. Before starting competitive intelligence, you need to clearly define the goals you want to achieve. They should be specific, such as increasing profits or worsening the position of a competitor.
Principle of reliability. The information received should be considered as presumably reliable, but not absolutely true. It is important to consider the possibility of false information.
Use all available tools. It is necessary to use all possible sources of data so as not to miss important information.
Constant monitoring. Competitive intelligence must be conducted continuously, not just occasionally, and not limited to working hours.
Regular analysis: The data rich people data package obtained should be regularly analyzed and reports should be created on how it can be used to achieve the goals.
Principles of Competitive Intelligence
The principle of sufficiency. If the goals have been achieved, they can be revised and new, more ambitious ones can be set.
The principle of "silent" defense. The reaction to competitors' actions must be effective and preventive of damage, and not just a response to their actions.
Search for reasons. If you learn about changes in a competitor's corporate policy, investigate the reasons that led to this.
Addressing the environment. Competitor analysis is important, but you should also consider consumer market trends and other environmental factors.
The principle of non-storage of information. Data about competitors becomes outdated and should not be stored and used as reliable in the long term.
The principles outlined above highlight the importance of a systematic and strategic approach to competitive intelligence in business to achieve specific goals and to remain competitive in the marketplace.
Read also!
"Examples of Marketing Strategies: From Apple to Barack Obama"
Read more
Directions of Competitive Intelligence
Competitor research may include several key areas, each of which is aimed at obtaining information about the competitor's activities. The main ones are listed below:
Financial Research
In this area, data is collected on the financial aspects of the competitor, including pricing, capital, profit, employee salaries, contractor payments, and other financial transactions of the company. This data is often available in public tax sources. Pricing is especially important, as price is a key factor in attracting customers.
Structural study
Here, information is collected about the competitor's structure and organization, including the number of divisions, the names and characteristics of its managers, and the history of mergers and acquisitions. The research also includes an analysis of the corporate culture and personnel practices.
Directions of Competitive Intelligence
Strategic Research
This area examines the competitor's strategy both in the past and in the present. It includes the company's goals and development plans in the field of marketing, products and services. Understanding the competitor's strategy is very important, as it affects its market activity.
Marketing research
Includes analysis of competitor advertising channels, whether they are managed independently or in cooperation with agencies. The study also covers analysis of website traffic sources, reputation in social networks and the Internet, as well as marketing strategies used by the company.
Technical research
Here, the competitor's technological processes and achievements in production are examined, which can give it competitive advantages. Data is also collected on innovative approaches to the management and organization of the company, which can increase its efficiency.
Download a free selection of
Forming a target orientation. Before starting competitive intelligence, you need to clearly define the goals you want to achieve. They should be specific, such as increasing profits or worsening the position of a competitor.
Principle of reliability. The information received should be considered as presumably reliable, but not absolutely true. It is important to consider the possibility of false information.
Use all available tools. It is necessary to use all possible sources of data so as not to miss important information.
Constant monitoring. Competitive intelligence must be conducted continuously, not just occasionally, and not limited to working hours.
Regular analysis: The data rich people data package obtained should be regularly analyzed and reports should be created on how it can be used to achieve the goals.
Principles of Competitive Intelligence
The principle of sufficiency. If the goals have been achieved, they can be revised and new, more ambitious ones can be set.
The principle of "silent" defense. The reaction to competitors' actions must be effective and preventive of damage, and not just a response to their actions.
Search for reasons. If you learn about changes in a competitor's corporate policy, investigate the reasons that led to this.
Addressing the environment. Competitor analysis is important, but you should also consider consumer market trends and other environmental factors.
The principle of non-storage of information. Data about competitors becomes outdated and should not be stored and used as reliable in the long term.
The principles outlined above highlight the importance of a systematic and strategic approach to competitive intelligence in business to achieve specific goals and to remain competitive in the marketplace.
Read also!
"Examples of Marketing Strategies: From Apple to Barack Obama"
Read more
Directions of Competitive Intelligence
Competitor research may include several key areas, each of which is aimed at obtaining information about the competitor's activities. The main ones are listed below:
Financial Research
In this area, data is collected on the financial aspects of the competitor, including pricing, capital, profit, employee salaries, contractor payments, and other financial transactions of the company. This data is often available in public tax sources. Pricing is especially important, as price is a key factor in attracting customers.
Structural study
Here, information is collected about the competitor's structure and organization, including the number of divisions, the names and characteristics of its managers, and the history of mergers and acquisitions. The research also includes an analysis of the corporate culture and personnel practices.
Directions of Competitive Intelligence
Strategic Research
This area examines the competitor's strategy both in the past and in the present. It includes the company's goals and development plans in the field of marketing, products and services. Understanding the competitor's strategy is very important, as it affects its market activity.
Marketing research
Includes analysis of competitor advertising channels, whether they are managed independently or in cooperation with agencies. The study also covers analysis of website traffic sources, reputation in social networks and the Internet, as well as marketing strategies used by the company.
Technical research
Here, the competitor's technological processes and achievements in production are examined, which can give it competitive advantages. Data is also collected on innovative approaches to the management and organization of the company, which can increase its efficiency.
Download a free selection of