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What is competitive intelligence and Why it is important for firms?

What is competitive intelligence?

Competitive intelligence is the way of collecting information on the business environment, competitors, competitive products and services, and overall business industry. In short,  Competitive intelligence is a way of identifying competitive gaps between two competitors.

 

Is Competitive intelligence gather ethical?

Yes.  Competitive practices are ethical and legal in business law.Competitive intelligence involves identifying competitors’ social posts related to their new products launching information.
But competitive espionage is not legal in nature. Because it is related to hacking competitor’s computer systems or paying competitor’s employees for confidential information.

How is competitive intelligence useful to the organization?

We all are well famous with the English proverb “Knowledge is power”. In the competitive marketplace, you can use your up to date information to get competitive advantages. Up to date information can make a huge difference between competitors.
When you research about competitors, you can easily find out crucial insight information about the competitors. This information helps you to move faster than others. It also help you to find out barriers in international marketing

Why competitive intelligence is important for firms?

There are 7 reasons why competitive intelligence is important for firms.

1. Anticipate competitors move
With the help of competitive intelligence, companies are now easily found out why competitors change their marketing strategy and what will do in next.

2. Try to find out new opportunities

We always mistake by thinking that competitors are harmless. But they can drastically change the marketplace with their new marketing technologies. So, competitive intelligence helps to find out new opportunities before competitors move there.

3. Stay ahead of rivals

When companies are wanted to stay ahead of rivals in the marketplace, competitive intelligence is the best way to find out the overall information regarding the marketplace.

4. Stand out

Companies must have a strong brand identity with unique offerings. This identity differentiates itself from competitor’s offerings. Besides, it is the best technique to identify your most suitable position in the market.

5.  Learn Market dynamics

Competitive intelligence brings new ideas and fresh thinking to move into the company. Besides, it shows how companies are positioning themselves in the market and take advantage of market gaps that enhance profits. Moreover, market dynamics help to take more effective operational decisions.

6. Propel innovation

Propel innovation is needed for business sustainability. Because it helps to achieve a competitive advantage that allows companies to keep in touch with the customer directly.

7.  Make better decisions

The marketers need insight information of competitors, not data to move on. Having fact-based information can helps companies to achieve competitive goals.

Finally, we learn that competitive intelligence is very useful for gathering competitors insight information.

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