Is Competitive Intelligence better than market research? No, they are just different.

Is Competitive Intelligence better than market research? No, they are just different. rnUnlike conventional market research, Competitive Intelligence should be viewed differently. As a more strategic and future-focused process. Where you strive to surpass your current understanding. So is Competitive Intelligence better than market research? No, they are just different.

In contrast, Market Research is predominantly about what’s happening now. And what people/customers think of their current offering. Like Competitive Intelligence, there is so much to Market Research. But at a base level, Market Research is about the now and the past. And Competitive Intelligence about the future.

A definition of Competitive Intelligence rnCompetitive Intelligence is about collecting and analysing information whose goals are to:

Understand and anticipate competitor activitiesrnPerceive and interpret industry and market events.rnFind, isolate and negotiate market disturbancesrnTo manage risk rnAnd gain organisational competitive advantage.rnIt’s also about the analysisrnCompetitive Intelligence is not processed until analysis take place. Analysis like what-if scenarios, analysis of competing hypotheses (ACH) or war gaming. So you have a chance to understand what your competitors are likely to do in the future. To assess potential future scenarios to justify specific business directions or decisions.

What is Competitive Intelligence?

Competitive Intelligence is the finding, sorting and critical analysis of information. To make sense of what’s happening and why. Predict what’s going to happen and give the options to help you control the outcome. Competitive Intelligence offers more certainty, competitive advantage, and insight.rnUse published and non-published sources and talk to people. People who will know the answer. Insights gathered on marketplace dynamics and the challenges in structured, disciplined and ethical.

Strategic activities that are created from working with Competitive Intelligence rnCreate a timely and accurate understanding of competitive and market forces. To input into your own strategic planning.rnDeveloping those useful insights through your research and structured analysis.rnStrengthening your marketing message, financial situation and operational activities.rnMinimising decision-focussed risk and reduced uncertainty.rnCompetitive Intelligence plays a crucial role every day and also planning and strategising. So by understanding things like:

What are they planning?rnUnderstand competitor business modelsrnHow are they planning to outflank you?rnWhy are they doing what they do?rnAnd why your customers could be attracted to them?rnWhat are the best decisions and actions to take?rnImprove your productivity by focusing on winnable activities and pitchesrnProvide an early warning of competitive threatsrnMake better strategic decisions and take actionrnIsolate and take advantage of their strengths and weaknesses to stay ahead of the gamernWhere are they winning?rnBe more informed and open to innovationrnStay fresh in the industryrnCreate exciting value propositionsrnAnd finally, identify alternative marketing channels your competitors are successfully (or not) usingrnAnd it can be argue that market research is part of Competitive Intelligence, but that’s another story.

Is Competitive Intelligence better than market research? No, they are just different. rnIn conclusion, while Competitive Intelligence and Market Research have different focuses, they are both important for understanding the market and making sound business decisions. Market Research provides historical data and insights into what is happening now, while Competitive Intelligence provides information on what may happen in the future. Both are essential for a well-informed business strategy.

Art by Thomas Ashlock