2009 Q2 Competitor Analysis
Most managers would agree that they have an inadequate amount of information about their competition. The best way to learn more about competitors is through a systematic approach. This usually entails setting up a competitive intelligence system which is not as difficult as it may first appear. Structuring a competitor intelligence system requires two things: What to collect and how to collect.
How to collect typically comes from either the field or from published data sources. Examples from the field include salespeople, engineers, market researchers, distributors and trade associations. Published data sources include the Internet, newspaper articles, government filings, trade journal articles and patents. Information about competitors can be gathered from several sources including the following:
- Press releases
- Annual report / Annual meeting notes
- Product literature
- Patent records
- Internet search
- Speeches by management
- Help wanted advertisements
- Former customers
- Competitor interviews
- Advertising
- Dun and Bradstreet reports
- Former employees
Management can usually acquire most of the above types of information without outside assistance. The main exception is the area of competitor interviews. Companies will generally discuss proprietary issues only with an independent company that is doing an overall assessment of the entire industry.
What information to gather should focus on a competitor’s objectives and capacity. This type of information has proven to be invaluable to company management, especially when they conduct annual strategic planning sessions. Knowing where your competitors are most vulnerable and how they might react to a strategy you have under consideration could mark the difference between success and failure.