Competitive Intelligence

C hap t er 5
 The Group will:

01 | 02 | 03 |
Define Competitive Define competition and Differentiate parallel products
Intelligence. competitive advantage. and substitute products.

04 | 05 | 06 |
Provide the goals of Explain public sources of Explain how to conduct
competitive intelligence. information for competitive competitor analysis.
intelligence.
What is Com p eti ti ve Inte ll ige nc e ?

● Competitive intelligence is the study,

evaluation, and data gathering of a firm about
a company's rivals. It focuses on learning
how the competitor performs and it's possible
future plans.
Competition
Competitive Adv
Competition is the contest between
organizations or firms that provide similar
products or services or targets the same
antage
audience of consumers. Businesses compete to
convert and retain customers, increase revenue Competitive advantage is the upper hand of a firm to it's rivals; it
and gain more market share. A high amount of is the ability of a company to provide products or services better
business competition can be a sign of a healthy, than its competitors enabling it to gain more customers and profit.
profitable marketplace and often enhances the
quality of available products and services by ● A business location can be an example of competitive
encouraging organizations to improve their
advantage, if one firm is located in a busy area, that business
operations, fulfill the needs of their customers
and develop their client relationships.
is more likely to obtain consumers than other nearby
businesses. And when it comes to prices if a business offers
products or even services much more cheaper, the company
will surely have competitive advantage to it's competitors.
Paralle l a n d Su b sti tu te Prod u c ts

Parallel products are technically identical with the entrepreneur's products but differ in
appearance. For example, here in Tarlac City there's a lot of places where a lot of cafe’s are
located close to one another.

Substitute products are identical products that a client may use for the same purpose as the
initial item. If the product they like is available, your clients may select it and determine
substitutions if the price, availability, or quality of their preferred item changes. One
example of this is McDonald's burger and burger king, if someone doesn't have access to it's
primary option the person will probably find another option.
 Goals of Competitive
Intelligence
An Introduction to Competitive Intelligence
Every company has to deal with competition. It is an inevitable part of today’s landscape; there are innumerable
products and services fighting to attract the eyeballs of a consumer for more than a fleeting moment. And with
every competitor that you knock off, new ones pop up like weeds.This is why you need to establish a program that
helps all teams across the organization to mobilize quickly to outmaneuver their competitors.

The objective of competitive intelligence is not to steal a competitors trade secret or other proprietary property but
rather to gather in a systematic over manner a wide range of information that when collected and analyzed
provides a fuller understanding of a competitors, structure, culture behavior, capabilities and weaknesses

Goals of competitive intelligence

- to know or discover the strengths and weaknesses of competitors
- to help the organization enhance their performance and competitive advantages.
Public sources of
information for
Competitive
Intelligence
Harnessing the benefits of corporate intelligence first requires an
understanding of the competitive intelligence examples. Using the
knowledge gained, company managers can then establish the best
sources for each of these types.

The examples include this public data:

emerging and current competitors, reviews of customers, pricing,
leadership changes, news coverage, job postings, content updates, and
reviews of employees.
 How to conduct competitor analysis?
Competitor analysis, known as competitive analysis, is a process of identifying competitors in your industry and
researching their different marketing strategies.

How to conduct a competitive analysis in 5 steps

1. Identify your competitors

Three different kinds of Competitors to consider.

Direct competitors: These are the businesses that offer similar products and services and target the same customers
in the geographic area that your business serves.

Secondary/indirect competitors: These are the businesses that offer different products and
services and target a different clients, but has a common general category (e.g., a winery and a brewery are secondary
competitors because they both sell alcohol).

Substitute competitors: These are businesses that offer different products and services but target the same customers in
your area.

2. Gather information about your competitors. (4 Ps)

Product: Compare their products to your own, ideally by purchasing and trying them out yourself. How is the quality?
What features do you like or dislike?

Pricing: How are their products and services priced? Do their prices vary for channel partners and customers? What is their
discount policy? Can you estimate their cost structure?

Place: What is their geographic reach or service area compared to your business?

Promotion: What marketing tactics are they using to interact and engage with their customers? What is their presence on
social media?
4 Ps other factors
Positioning, Reputation, People and Partnership.

3. Analyze your competitors’ strengths and weaknesses

It is important that you compare the performance of your
competitors with your own. Start by ranking your competitors in the
criteria listed above on a scale from 1 to 10, like using a simple
grid/table. Prepare a written evaluation of each competitor’s
respective strengths and weaknesses. Summarize everything that
would make a consumer choose (or not choose) each competitor.

Key success factors (also known as competitive emphasis or

strategic posture) state the important elements required for a
company to compete in its target markets. In effect, it articulates
what the company must do, and do well, to achieve the goals
outlined in its strategic plan.
 4. Determine your competitive advantage

Analyzing the competitive landscape will help pinpoint your competitive advantage. It could be a distinctive strength that
appeals to your target market and something you can build your brand image and messaging around. Or if you see a weakness
in the competition, you could lower your prices and launch new promotions to take advantage of the opportunity.

The purpose of a competitor analysis is to understand your competitors' strengths and weaknesses in comparison to your own
and to find a gap in the market. A competitor analysis is important because: It will help you recognise how you can enhance
your own business strategy.
 ● https://youtu.be/UAJ5EAD9cgQ
● https://www.slideshare.net/RobbySahoo/competitive-i
ntelligence-11967702
● https://www.bdc.ca/en/articles-tools/marketing-sales-e
xport/marketing/how-evaluate-competition

Sources or
● https://www.google.com/url?q=https://klue.com/wp-co
ntent/uploads/2020/09/09222020-Guide-to-CI-final.pd
f&sa=U&ved=2ahUKEwjp8oOY2aj_AhWk-GEKHT
OICeoQFnoECAoQAg&usg=AOvVaw29BdQUSjBMt
VSMB3bjxrKC

References:
● https://www.indeed.com/career-advice/career-develop
ment/business-competition#:~:text=Business%20comp
etition%20is%20the%20contest,and%20gain%20more
%20market%20share
.
● https://www.investopedia.com/terms/s/substitute.asp
 Group Members:

CARPIO DELA CRUZ

BALICOCO Joan E.
CATAINA MATEO
Jowie Victoria

Raven Antoinette April Mae Krysstal Eden

NOOL RAMOS

MENDEZ Rona Caryl PARAGAS Honey Grace RAZALAN

Mariel Grace Chloe Marie Richelle Anne
Thank yo u!
“Never stop learning
from your
competition.”