Business and Marketing Analytics

LECTURE 41-42
Business Research in Strategy
and Decision-Making
Competitive Intelligence and Industry Analysis
Competitive intelligence (CI) involves the systematic collection,
analysis, and interpretation of information about competitors,
customers, suppliers, and other stakeholders in the business
environment. The goal is to gain insights into competitors'
strategies, capabilities, strengths, and weaknesses to make
informed decisions and gain a competitive advantage.

For example, CI for RIL might involve analyzing the pricing

strategies, product offerings, and market share of its competitors in
various sectors such as petrochemicals, telecommunications, retail,
and digital services. RIL could gather intelligence on the expansion
plans, technological innovations, and financial performance of
competitors such as Tata Group, Bharti Airtel, and Amazon India to
anticipate their moves and formulate effective counter-strategies.

Industry analysis involves examining the overall structure, dynamics, trends, and competitive forces
within a specific industry or market segment. The goal is to understand the factors shaping industry
competitiveness, profitability, and growth prospects.

For example, industry analysis for Tata Motors might include assessing the automotive industry in
India, considering factors such as market size, growth rates, regulatory environment, technological
advancements, and consumer preferences. Tata Motors could analyze Porter's Five Forces to
understand the bargaining power of suppliers and buyers, the threat of new entrants, the threat of
substitutes, and the intensity of rivalry among competitors within the Indian automotive market.

Let’s understand the strategic planning and market entry research.

Strategic Planning and Market Entry Research

Strategic planning and market entry research are crucial steps for any business looking to expand
into new markets or launch new products/services. Here's a general outline of how you might
approach it:
§ Define Objectives: Clearly outline what you aim to achieve with your market entry. Whether it's
expanding your customer base, increasing revenue, or diversifying your product portfolio,
having specific goals will guide your research and planning.

§ Market Analysis: Conduct thorough research on the target market. This includes studying
market size, growth trends, competition, regulatory environment, cultural nuances, and
consumer behavior. Tools such as SWOT (strengths, weaknesses, opportunities, threats)
analysis can help assess the market landscape.

§ Segmentation and Targeting: Identify and segment your target audience based on
demographics, psychographics, and buying behaviors. Determine which segments offer the
best opportunities for your business and tailor your strategies accordingly.

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§ Competitive Analysis: Analyze key competitors operating in the target market. Identify their
strengths, weaknesses, market positioning, pricing strategies, distribution channels, and any
gaps in the market that you can exploit.

§ Entry Strategy: Based on your analysis, determine the most suitable entry strategy. This could
involve exporting, joint ventures, partnerships, acquisitions, or setting up wholly-owned
subsidiaries. Consider factors such as cost, risk, control, and speed to market when making this
decision.

§ Market Positioning: Define how you want your brand and products/services to be perceived in
the new market. Develop a unique value proposition that differentiates you from competitors
and resonates with your target audience.

§ Market Research: Conduct primary research, such as surveys, focus groups, or interviews, to
gather insights directly from potential customers in the target market. This will help validate
assumptions, refine your offerings, and fine-tune your marketing strategies.

§ Regulatory Compliance: Ensure compliance with local laws, regulations, and industry
standards in the target market. This may involve obtaining licenses, permits, certifications, or
meeting specific product requirements.

§ Marketing and Distribution Channels: Develop a comprehensive marketing plan tailored to the
target audience's preferences and media consumption habits. Identify the most effective
distribution channels to reach customers and ensure efficient product/service delivery.

§ Financial Projections and Risk Assessment: Prepare detailed financial projections for the new
market entry, including revenue forecasts, expense budgets, and return on investment analysis.
Assess potential risks and develop contingency plans to mitigate them.

§ Implementation and Monitoring: Execute your market entry plan systematically, closely
monitoring progress against predefined milestones and key performance indicators (KPIs). Be
prepared to adapt and pivot your strategies based on real-time feedback and market dynamics.

§ Evaluation and Optimization: After entering the market, continuously evaluate the performance
of your strategies and initiatives. Identify areas of improvement and optimization to maximize
your market share, profitability, and long-term success.

Now, understand the decision-making models and research support.

Decision-making Models and Research Support

Decision-making models provide structured frameworks for analyzing options, assessing risks, and
making informed choices. Here are some common decision-making models along with examples of
how research can support each model:
§ Rational Decision-making Model: This model involves identifying the problem, generating
alternative solutions, evaluating alternatives based on criteria, selecting the best option, and
implementing it.

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 Research Support: Market research helps identify customer needs and preferences, competitor
analysis informs alternative generation, and financial analysis aids in evaluating the feasibility
and profitability of options.

§ Bounded Rationality Model: Recognizes that decision makers may not have the time or
resources to evaluate all alternatives comprehensively, so they are satisfied by selecting the
first satisfactory option.
Research Support: Prioritize research efforts to focus on critical factors affecting decision
outcomes, such as key market trends, customer feedback, and competitor strategies, to quickly
identify satisfactory options.

§ Intuitive Decision-making Model: Relies on instinct, experience, and judgment rather than
extensive analysis. Decision makers rely on patterns and past experiences to make quick
decisions.
Research Support: Research can provide a foundation of knowledge and data that feeds into
the intuition of decision makers. For example, understanding historical market trends and
customer behaviors can inform intuitive decisions.

§ Normative Decision-making Model: Involves identifying the ideal decision criteria,

systematically evaluating alternatives against those criteria, and selecting the option that
maximizes utility or satisfaction.
Research Support: Research helps establish decision criteria by providing insights into market
dynamics, consumer preferences, regulatory requirements, and financial implications. Data
analysis supports the systematic evaluation of alternatives.

§ Behavioral Decision-making Model: Recognizes that decisions are influenced by cognitive

biases, emotions, and social factors. Decision makers may not always make optimal choices due
to these influences.
Research Support: Research can help identify cognitive biases and behavioral patterns that
may impact decision making. For example, conducting customer surveys and focus groups can
reveal emotional drivers and social influences on purchase decisions.

§ Group Decision-making Model: Involves collaborative decision making among a group of

individuals, incorporating diverse perspectives and expertise to reach a consensus.
Research Support: Research provides a common ground for group discussion by presenting
relevant data, market trends, and competitor analysis. It also facilitates communication and
consensus-building by ensuring that all stakeholders have access to the same information.

References
§ https://www.competitiveintelligencealliance.io/competitive-intelligence-vs-market-
intelligence/#:~:text=Competitive%20intelligence%20is%20more%20specific,competitors%20are%20a%20part%20of.
§ https://www.sisinternational.com/solutions/strategy-consulting/market-entry-research/
§ https://www.linkedin.com/pulse/strategic-planning-market-entry-successfully-new-maga%C3%B1a-
dur%C3%A1n#:~:text=Market%20entry%20requires%20meticulous%20planning,triumphant%20expansion%20into%20new%20territories.