Competitive Intelligence services act as a defense system for companies to stay competitive and protect their market share. Competitive intelligence involves gathering data related to business competitors in a systematic format. This helps companies to formulate counter-strategies to protect their market share and address market needs better than their competitors.
Companies depend on competitive intelligence to react to the changing market conditions in a timely and effective manner. It is important to constantly monitor competitor actions as it provides cues to their pricing systems, marketing campaigns and business ideas. Adopting crawling and scraping techniques enable companies to access competitor data even on a real-time basis.
Why do we need competitive intelligence services?
Business decision makers should have access to right data at the right time to address the market needs ahead of their competitors. Therefore service providers focus on issues such as business model changes and product differentiation that require immediate attention.
Competitive intelligence offers insights on key competitor business changes such as revamping their web content, new business partnerships and new product offerings. Companies may use this data to come up with alternate products or look for potential partnerships to outdo their competitors and improve their revenues. When companies fail to match their competitors in terms of service and products, it leads to erosion of market share and losing out on business opportunities.
Scope of competitive intelligence
Service providers extend their expertise and experience in managing voluminous data and knowledge management systems. They help businesses and key decision makers with the right information on the competitive landscape. They support in developing marketing tactics for better market penetration and improving market share. Some of the key functions of competitive intelligence services include:
- Competitor profiles
- Competitor pricing and business channels
- Customized data crunching as per business needs
- Industry and market evaluation
The procurement advantage
Competitive intelligence services provide procurement managers with data on key aspects such as competitors’ suppliers, sourcing cost and logistics. Procurement managers can use this data to identify suppliers who can offer the best price and provide quick delivery of materials. Gaining on pricing and quality is necessary for procurement teams to have an edge over their competitors. This helps them to offer their products at a competitive price and capture a significant share in the market.
Is it a spy game?
As the present day market place has become a battle field of sorts, companies rely on competitive intelligence services to be battle-ready to take on competitors. They literally have to spy on their competitors, but in a legal and professional manner. They have to collect and analyze information on their products, marketing strategies and pricing tactics. This helps in understand their areas of strengths and weaknesses which enable to devise exigency strategies to stay ahead of them in the market place.