‘Know Your Enemy Better’.
If you know your enemy better, then you can predict and take your actions carefully to achieve success.
In this competitive world, many businesses use competitive intelligence to gather information about their competitors to gain a competitive advantage in the market.
“A survey conducted by Semrush revealed that nearly half (45%) of marketers consider understanding market trends and customer expectations as the benefit of competitive intelligence.”
If you are a small business owner who wants to understand Competitive Intelligence (CI) better, then continue reading this blog.
It provides you with valuable insights on how to implement competitive intelligence strategies effectively and take your actions carefully to achieve success.
Competitive Intelligence (CI) is a process of collecting and analysing data about your competitors and providing you with a strategic advantage in the market.
It is a very transparent and ethical way to understand your competitor and customer moves. Sometimes it is also called corporate intelligence.
For small businesses, competitive intelligence is very helpful in making meaningful decisions to grow your business. It navigates you to the successful path of your business.
It is really tough to stay ahead in the market without knowing what your competitors are doing.
To survive and grow your small business, it is very important to stay informed about the market trends, strategies, and activities of your competitors.
Competitive intelligence is important for your business for the following reasons:
It is very helpful for the marketing team to analyse the competitors’ marketing strategies and campaigns so that they can identify areas for improvement and develop more effective marketing tactics to stay ahead in the market.
Analysing the product pricing and sales strategies of your competitors helps you determine the best pricing strategy for your own products and services.
Also, it helps you to improve your sales techniques and customer acquisition methods to attract more customers.
Comparing your product with others in the market helps you to understand where you need to improve your product.
By regularly fine-tuning your products and services based on competitor analysis, you can win the competition in your business and meet the evolving needs of your target market.
Practising competitive intelligence in your business provides you with many opportunities to grow your small business so that you stand out in the market.
The following are some benefits of competitive intelligence..
Understanding your competitor helps you to identify gaps in the business and allows you to make the right decisions to stand out in your competition.
The main role of competitive intelligence is to gather and analyse data about your competitors, how strong they are, and what their weaknesses are.
By gathering information and analysing your competitors from different sources, you can take proactive steps in your business.
CI collect information from:
Your marketing represents the voice of your brand, and it influences how customers perceive and recall your business.
Competitive Intelligence has the ability to enhance and refine that voice.
It analyses the marketing tactics of your competitors and learns how your audience reacts.
So it is easy for you to refine your communications, select appropriate channels, and design campaigns that resonate more effectively with your customers.
One of the most powerful uses of competitive intelligence is understanding the needs of your customers and what they truly want.
You can understand that by observing how your competitors’ customers respond to their products and services, you gain valuable insights into:
This understanding helps you make improved experiences common pitfalls, and deliver what your audience is looking for and that too before the competitor does.
When you’re running a small business, it’s easy for your marketing to fall into the same routine. However, looking at what competitors are doing can help change that pattern.
Competitor Intelligence helps you:
By doing this, you can enhance your advertising, maintain the excitement of your business, and help your customers feel that you relate to them more than others.
Competitive intelligence is generally classified into two categories. One is tactical and the other is strategic.
However, some experts also categorise competitive intelligence into different types. Here are some of them.
Competitor intelligence involves gathering information specifically about your competitors, including their products, pricing strategies, and market positioning.
By working with a good business coach, you can turn competitor insights into clear actions that keep your business ahead.
Example
Have you noticed that the airline ticket prices seem to fluctuate constantly?
By monitoring competitors’ pricing strategies and market demand, airlines can adjust their own prices accordingly to maximise profit and stay competitive in the industry.
MSMEs can use the same strategy. Observe your competitors’ pricing in real time, note discounts, offers, or sudden price hikes.
This method, called shifted-market pricing, allows you to stay competitive without engaging in unethical practices.
Customer intelligence involves gathering information about the preferences, behaviours, and needs of your target customers.
This type of competitive intelligence helps businesses better understand their target market and helps to meet customer demands effectively.
Example
You all know the famous coffee brand Starbucks. They use customer intelligence to understand what, when, and how often people buy.
By launching a rewards program and mobile app, they started collecting valuable data on customer behaviour.
Understanding market intelligence involves comprehending market dynamics, identifying patterns in behaviour, and taking action to help businesses make informed decisions.
Example
Netflix identifies content gaps and local viewing patterns across countries using market intelligence.
They choose what programs to create or buy by researching popular viewing habits and local genre trends.
This helps them meet demand before competitors.
Product intelligence involves analysing the features, benefits, and performance of your own products as well as those of your competitors.
By staying informed on product trends and innovations, businesses can plan strategic decisions to stay competitive in the market.
Example
Samsung is the best example of product intelligence in action.
They analyse how users interact with their products through SmartThings Analytics and Galaxy AI systems.
These tools track customer behaviour. Such as:
This data supported the Samsung product developers to improve their future models and services based on real user feedback.
This is analysing competitors’ financial data, patent filings, and SEO strategies.
These insights reveal market trends, innovation signals, and content focus areas.
It helps businesses identify emerging technologies that could disrupt their industry, allowing them to adapt and innovate proactively.
By using technology intelligence, businesses can stay out of their business and capitalise on new opportunities for growth and expansion.
For Example
By reviewing patent filings, a company may spot that a competitor is developing new renewable energy technology.
Analysing this data of a competitor’s move helps them to take immediate action by investing money into related research and development to stay competitive.
Partner and supplier intelligence provides valuable insights into the capabilities, strengths, and weaknesses of potential collaborators and vendors by analysing their previous performance, work ethics, etc.
So, you can make the right decision when selecting partners and suppliers in your supply chain.
Example
Let’s say you notice your competitor has just partnered with a leading tech company.
This move might seem small, but it could signal a new product launch, feature upgrade, or expansion plan.
As a business owner, it is important to take proactive steps to stand out in the crowded market.
Also, by observing your competitor’s actions closely and making strategic decisions, you can differentiate your offerings.
Using regulatory and legal intelligence enables businesses to follow the rules and regulations properly.
Also, help them be aware of any changes or updates that may affect their operations.
This can help prevent costly fines, penalties, and legal issues when you fail to follow the rules and regulations.
Example
Observing new privacy regulations allows you to understand how your competitors are adapting and staying compliant in the industry.
This information can give you an advantage over others and safeguard the reputation of your business.
It gives companies important information about worldwide trends, market situations, and changes in politics and economics that may impact their business operations.
Keeping track of the economic and political landscapes can help businesses to make the right decisions and utilise the available business opportunities.
Example
The famous soft drink brand Coca-Cola always observes the changes in currency, tax regulations, and social disturbances to modify its pricing strategies and marketing campaigns.
Reputation and brand intelligence play a crucial role in helping businesses understand public perception and the effect their brand has on customers.
Through the analysis of people’s emotions and observing media feedback, businesses can gain insight into how their customers perceive them.
Also, the gained input helps them to take the right actions to protect their brand image and make necessary changes in their businesses.
Example
Wendy’s is known for its bold, witty tweets. This tactic makes their brand stick in people’s minds, resulting in posts that receive hundreds of thousands of shares.
Even if you don’t use humour, tracking competitors online helps you learn their brand tone, customer reach, and public image shifts.
Do you want to stand out from the crowd and take your business to the next level?
Corporate espionage is nothing but spying on competitors, and it is a serious threat to businesses.
It involves the theft of trade secrets, intellectual property, or confidential information.
Implementing strict security measures and protocols helps businesses to safeguard their data and prevent unauthorised access by competitors.
Therefore, it is important for businesses to prioritise cybersecurity and spend on technologies that can detect and mitigate potential threats to their sensitive information.
I hope you now know the 11 types. But how these types are categorised into tactical and strategic competitive intelligence is also important to understand.
| Tactical Competitive Intelligence | Strategic Competitive Intelligence |
| It is defined as the process of tracking short-term competitor actions to support quick decisions in areas like pricing, marketing, or sales. | It is defined as the process of analysing long-term competitor strategies and market trends to guide future business direction. |
| Used to make immediate action, such as launching counter-offers, tweaking campaigns, or responding to competitor moves in real time. | Used by leadership to shape long-term plans like entering new markets, investing in innovation, or shifting business models. |
| Tactical Includes Customer Intelligence, Product Intelligence, Technology Intelligence, Supplier Intelligence, Reputation, Brand Intelligence, and Competitor Intelligence | Strategic Includes Regulatory and Legal Intelligence, Geopolitical and Economic Intelligence, Corporate Espionage, More Hidden Information, Market Intelligence |
| Example: Adjusting your prices in reaction to a competitor’s short-term deals. | Example: A business explores a new market after observing profits made by competitors. |
Competitive intelligence helps businesses stay ahead in the market. However, it also has some disadvantages. Here are a few drawbacks to consider.
Competitive intelligence is like a chess game where you gather information about your competitors to make strategic decisions.
It provides businesses with helpful insights into market trends, competitor strategies, and opportunities for growth.
However, it is important to remember that competitive intelligence should be used ethically and legally to avoid potential risks and disadvantages. So, play your game smarter!
If you are more interested in topics like this, explore insightful blogs on business growth and strategies from Rajiv Talreja.
None can destroy iron, but its own rust can! Likewise, none can destroy a person, but their own mindset can.
Former chairperson of the Tata Group
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