Competitive-intelligence is defined as collecting, examining, and using data acquired to understand the various competitors, clients, and other market factors essential in the business structure.
It is also referred to as corporate intelligence.
Importance of Competitive Intelligence
The primary importance of competitive-intelligence lies in the fact that it enables organizations and businesses to understand their competitive environment. Through competitive-intelligence, organizations can highlight both opportunities and challenges presented adequately. Additionally, having understood the opportunities and challenges they face, businesses can lay efficient and effective business procedures.
Various platforms and online organizations offer the data and information necessary in competitive-intelligence. One such platform is the NetBase Quid, a market and consumer intelligence platform that employs various social media analytics to provide information to various companies.
Like various analytic platforms, NetBase Quid offers more than an analysis of available markets, opportunities, and challenges. The platform also provides solutions to improve the performance of a company. NetBase Quid also uses researched data to define objectives that suitable strategies for the various companies that seek its help.
How Does Competitive-Intelligence Work?
Competitive intelligence gathers applicable data from various information sources ethically and effectively. A corporation can acquire competitive-intelligence by projecting a target market, ensuring that various opportunities and challenges are anticipated effectively. In competitive-intelligence, a detailed understanding of various business competitors is highly recommended. Consequently, competitive-intelligence studies how various market proceedings affect the marketplace and its influence on their competitors. Other than that, competitive-intelligence also reveals how various stakeholders and distributors might react to the disruptions.
Competitive-intelligence varies from one corporation to another. The concept also varies depending on the department in question.
Laws of particular nations might also influence the type and rate at which a corporation uses competitive-intelligence.
Classification of Competitive-Intelligence
Competitive-intelligence activities can be distinguished using two main categories: Tactical competitive-intelligence and strategic competitive intelligence.
1. Tactical Competitive-Intelligence
It focuses on the short-term benefits of the corporation, such as how the company can increase revenue and capture a target market.
2. Strategic Competitive-Intelligence
It emphasizes long-term issues concerning a corporation, such as opportunities and key challenges the company faces.
Even though some companies garner a handful of information concerning their competitors from sources online, competitive-intelligence provides more concrete information that can hardly be sourced online. Various competitive-intelligence analysis uses data and analytics from many sources ranging from media outlets, customer reviews, trade conferences and shows, industrial experts, public findings, and government records. Additionally, competitive-intelligence includes detailed research concerning a company’s stakeholders, consumers, competitors, supplies, and key distributors.
Various competitive intelligence tools can be used by different businesses to better their services and increase their market. They include:
- Semrush – this is a competitive-intelligence tool that business owners who value their online presence can understand their business landscape.
- Crayon – this is another must-have competitive-intelligence tool for business owners. The software is essential in ensuring the business owners can follow, study, and react to market strategies used by their competitors, consumers, and partners.
How to Choose the Best Tool
To choose the best tool, a business owner needs to understand the current market trend and the position in which they lie among competitors. Businesses also need to understand their target in using competitive-intelligence tools to use specialized platforms over general ones.
How to Employ Competitive-Intelligence to Gain Advantage Over Competitors
Before indulging in the use of competitive-intelligence, a business needs to conduct a benchmark on how other companies have used such tools to their advantage. Bench-marking also offers insight into possible market trends that a business needs to be acquainted with.
A company in need of success can count on competitive-intelligence to boost its performance. Companies that use competitive-intelligence are also ahead of their competitors in the digitized world.