Competition intelligence is a practice of actively gathering, analyzing, synthesizing and disseminating information about one company’s competitors and their respective products, services and strategies. This type of intelligence has become a major component of companies’ market intelligence frameworks; it provides both insight into how companies can differentiate themselves and how they can better compete in their respective markets.
By assessing various information sources ranging from publicly available information, such as patent filings, trade magazines, and even competitor presentations and press releases to tactical elements such as pricing and distribution channels, Competition intelligence helps a company understand what its competitors are doing and helps it act accordingly. Knowing a competitor’s product strategies, brand positioning, distribution strategies, advertising campaigns and pricing strategies is invaluable in any market.
Competition intelligence is typically gathered and managed by a company’s intelligence team. Depending on the company’s size and the complexity of the intelligence gathering and analysis process, the intelligence team can either be a part of the corporate strategy team, or a separate department dedicated solely to the practice. Regardless of the organizational structure, intelligence is typically gathered from a variety of sources such as the Internet, public sources and press releases; from competitors’ upper-level management presentations, pricing information and vendor strategies; and from interviews with customers, industry specialists and experts.
The intelligence gathered by the team is then analyzed and synthesized by the intelligence team in order to provide a comprehensive assessment of the competition’s strategies and product development activities. This helps the company anticipate changes in the competitive landscape and plan accordingly. It also gives the company an understanding of the competitive strengths and weaknesses in its industry, which can be used to adjust the company’s own strategies and product and services offering.
Competition intelligence often provides the information necessary to develop competitive marketing and sales strategies. The intelligence team can help the company determine the most effective and cost-efficient tactics to differentiate itself from the competition. These tactics can include utilizing specific pricing and promotional strategies, creating compelling promotional messaging and utilizing specific distribution channels.
In today’s competitive market, having access to timely and relevant competition intelligence is essential for any company’s success. Companies can use competition intelligence to gain an informed competitive advantage in their respective markets and develop more effective and cost-efficient business strategies.
