Lecture 8 - Competitive Intelligence

Question 1

What is Competitive Intelligence?

Answer 1

Finding your place in the world (how do you fit in, what is around you, are there any threats, opportunities or changing circumstances).
The identification, collection, understanding and interpretation of information about your business, your competitors and the environment in which you are (or will be) operating.

Question 2

How does CI help?

Answer 2

1. Work out where you are
2. Work out where the rest of the world is
3. Work out your relevance to the rest of the world

Question 3

What are examples of secondary research?

Answer 3

1. Published Data - previously collected for other purposes or studies
2. Internal (eg. sales reports, invoices, audits)
3. External (eg. Internet searching, ABS, journals, information databases)

Question 4

What are examples of primary research?

Answer 4

1. Unpublished data - need to find the information yourself
2. Use specialized CI techniques (eg. focus groups, surveys, interviews)
3. Feedback from sales representatives

Question 5

Secondary Research (Time, Cost, Labour, Limitations)

Answer 5

Efficient, Free to expensive, minimal labour and have limitations such as subjectivity, reputability of course, errors, out-of-date, usually available to competitors

Question 6

Primary Research (Time, Cost, Labour, Limitations)

Answer 6

Moderate to tedious duration, moderate to expensive, Mostly labour intensive and limitations such as low response rate, incentive for participation, subjectivity, trust and sampling difficulties

Question 7

What does the Competitor Intelligence Pyramid comprise of?

Answer 7

Sources of Data, Analysis of Data, Recommendations

Question 8

What are examples of sources of data?

Answer 8

Industry experts/ analysts
Industry publications
Trade shows/ conferences 
Advertisments/ PR
University research centres 
Financial
Court documents/ patents
Suppliers/ customers
Newspapers/ business wire
Help wanted ads
Reverse engineering labs

Question 9

What is the analysis of data?

Answer 9

To develop a deep understanding of the data

Question 10

What are some recommendations?

Answer 10

Track existing Rivals, anticipate new rivals, inform strategy by identifying own/ competitor’s strengths or weaknesses, have an early warning system and plan of attack or retaliation

Question 11

What is a competitor analysis?

Answer 11

1. What drives the competitor
2. What is the competitor doing
3. What can the competitor do
4. What does the competitor believe about itself and the industry
5. What are the competitor’s capabilities
6. How will our competitors do in the future
7. Where do we have a competitive advantage
8. How will this change our relationship with our competitor

Question 12

What is the difference between short term and long term CI?

Answer 12

Short term CI: strong focus on markets and competitor’s products and the immediate revenue of the company’s products, prices, and marketing and advertising.
Long-term CI: Detects weak signals and trends very early so future risks and opportunities can be managed and controlled

Question 13

How to perform CI well?

Answer 13

1. Define the problem/ issue (why do you need the CI research?)
2. Set research objectives (what do you intend to do?)
3. Develop strategic research plan (identify available resources - time, money and people. Identify potential information sources. Develop methodology and process)
4. Do the research
5. Process and analyse information (what does it mean? is it useful)
6. Act on research (Use information for strategic development decision making)

Question 14

Why is good CI essential?

Answer 14

1. stay ahead of competitors
2. maximise opportunities and customer base
3. inform the IP strategy
4. avoid shocks and reduce risk
5. inform the product development
6. defining the market
7. identify new technologies both useful and disruptive
8. inform short and long term business strategies
9. bench mark pricing and quality
10. identify partnerships
11. reducing reaction time