Competitive intelligence (CI) means gathering information about your business, other businesses and the world around you and analyzing the big picture so that you can compete in a global economy. Even though collecting the data takes time and effort, your business can benefit in multiple ways. You've probably heard the saying that knowledge is power, and the saying applies to business just as much as any other facet of life.
In a recent survey, researchers found around 80 percent of businesses have at least one part-time employee who works on CI. Researchers found around 80 percent of businesses have at least one part-time employee who works on CI (Competitive intelligence) Share on X If you aren't worried about studying the data, you may fall behind others in your industry.
Still on the fence about whether you should invest in CI? Here are some of the benefits for businesses who embrace analysis.
1. Get to Know Your Competitors
It's difficult to compete against an unseen force. Gathering data on your competitors allows you to compare your strengths and weaknesses against theirs. Identify places where your business might excel above others in your field. For example, if none of your competitors offer fast delivery, can you figure out the logistics and offer a quality delivery service to customers?
2. Find Underserved Territories
An in-depth survey of businesses in your area may also identify underserved territories. Which local areas do your competitors serve, and which areas do you serve? Graph out the overlap on a map, using different colors for each competitor. Are there locations without any color at all? Perhaps you've focused your effort in the same areas as competitors when it would serve you better to target an area no one else serves.
3. Save on Research and Development
In some industries, CI gets applied to where money goes for research and development (R&D). Understanding the goals of your competitors allows you to identify gaps and put the focus on areas that need better developed. Industries such as pharmaceuticals may benefit from CI because scientists can see where a clear need for a new type of medicine exists and throw research toward a solution.
Any business that manufactures something benefits from more streamlined R&D practices. Even if you run a service-based business, analyze areas that might need better developed.
4. Avoid Mistakes
Researching your competitors also helps you pinpoint their weaknesses and the mistakes they make. Because your businesses are so similar, knowing where they stumbled keeps you from making the same mistakes in your business model. Perhaps your nearest competitor's orders started to snowball and took on massive amounts of inventory to meet demand. However, a big contract fell through, and now they're stuck with thousands of units of inventory and no cash flow.
Learn from that mistake and think about ways you can meet increased demand without putting your company in financial jeopardy. Knowing the problems others faced gives you an opportunity to problem solve before the same situation applies to your brand.
5. Respond Quickly
Armed with knowledge, you can put a few contingencies in place that allow you to take advantage of an opportunity.
For example, let's say your competitor has a mega client who buys hundreds of thousands of dollars worth of products from them every year. Due to a change in management and a misunderstanding, the mega client decides to give your company a chance. Because you've studied your competitors and know their strengths and weaknesses, and because you've gone through potential contingencies with your staff, you're able to present a fast solution for the mega client. You wow them and secure a lucrative contract for the next five years.
6. Show How You're Different
Do you want to stand out from all the other companies out there that are just like yours? Knowing the ins and outs of competitors will help you stand out from the crowd. Think about what makes your brand unique. Why is your story different? If it isn't different, how can you make it so?
If your origin story sounds eerily similar to every other company in your niche, find a unique mission. Embrace green technology, take up a cause, invest in your employees. Little changes often have a significant impact over time, so spend time thinking about why you're unique or how you'd like to stand out and do something special.
7. Identify Industry Changes
CI isn't something to do once and forget. Good CI means monitoring competitor websites, social media accounts and press releases. Pay attention to announcements and changes on their end. Have they suddenly hired a new CEO? Research the CEO's background and see where their strengths are. A background biography indicates why the company hired the person and whether you should shift your strategy.
Keeping an eye on industry data helps you identify potential threats before they occur. Watch for items shared on social media that indicate big shifts in technology or best practices. How will your brand adapt to any changes? Seeing the changes before they happen or very quickly after they do will allow you to adjust and keep from losing customers. Consumers will also see that you care about your industry and are knowledgeable about what's occurring.
Add Competitive Analysis Today
If you've never studied data on your competition, dig into the details today. It's fairly easy for anyone to find at least a few patterns and make changes that put them ahead of the competition. Keep in mind that your CI should be ongoing, as other businesses do their research and change over time too. Build profiles on each of your competitors so that if you need to conduct a quick analysis, you're ready. If you're armed with knowledge, your business will grow more than ever before.
Lexie is a designer and typography enthusiast. She enjoys writing HTML code and creating new styles guides. In her spare time, she works on her design blog, Design Roast.
