Competitive Intelligence can be used to determine the corporate strategies of competitors. The utility of this knowledge is significant. While your strategy should not depend on competitors’ strategies, your strategy may be influenced by them. Moreover, getting inside the minds of the competitors, being able to think as they would think, enables you to predict future moves and to predict reactions to your own moves.
Competititve intelligence can reveal the key corporate goal(s) of competitors. Since strategies and tactics roll down from a corporate goal or objective, it is important to understand that core goal as a starting point. Does the competitor want to focus on growth or profitability? Is it concerned about quality or service or price leadership? Where does the organization focus, and what is it willing to sacrifice?
Once we understand the core goal, we can identify the strategies in place to attain this goal. If the goal is to become the easiest organization to work with in the industry, what are the steps it is taking at a corporate level to ensure this happens? Practically, this means asking competitor contacts just how they plan to achieve the core goal. “What steps are you taking to ensure the goal is achieved?”
Strategy is about choice – the selection of one option from an array of alternatives. We would also probe into the core competencies, unique selling points, and value propositions of the organization. What does it believe it is uniquely good at, compared to the competition, that is critical to its business model? In addition to understanding this core capability, we would assess its impact. What benefits or difference does this capability make that exceed the benefits of working with other providers of the product or service? How does it intend to convey this unique capability to its customers and prospects? And what does it admit to being weak at? What presumed opportunities does it admit to walking away from?
Primary research is the only way to glean the strategy. While there is evidence of its strategy on its website, in its press releases, in its financial reporting (except for private companies), the strategic direction can only be gleaned by asking knowledgeable employees about what action steps they are taking to take advantage of opportunities and to circumvent threats.
Conclusion. Much of competitive intelligence is tactical. Profiling a list of competitors, determining an arcane quantitative answer, or answering a so-what question. Competitive intelligence should be utilized more effectively as a strategy tool. To influence and shape, and challenge our own, strategic choices. Predicting competitor actions and reactions is a good thing. We should do more research around the corporate strategies of our competitors.
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