Competitive Intelligence: Definition, Types, and Uses (2023)

FAQs

What are the types of competitive intelligence? ›

Competitive intelligence can be classified as myopic-oriented, tactical intelligence, or long-term focused strategic intelligence.

The definition of competitive intelligence (CI) or competitor intelligence is the process in which a company gathers and analyzes information about its industry, business environment, competitors, and products with the goal of directing their future strategy.

Competitive intelligence is necessary to help businesses understand their business environment, challenges, and the opportunities present in this space. The information gathered can be used to set up efficient business practices and standards for your business.

The airline industry is a perfect example of how to use competitive intelligence wisely. Every day, airline companies change flight ticket prices based on external information. For instance, if you're running an airline and your competitors increase pricing for a certain route, you will quickly do the same.

Economists have identified four types of competition—perfect competition, monopolistic competition, oligopoly, and monopoly.

The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.

1. [noncount] a : the act or process of trying to get or win something (such as a prize or a higher level of success) that someone else is also trying to get or win : the act or process of competing.

The main components of competitive Intelligence are competitor analysis, market analysis, and SWOT analysis. By understanding your competition and the market you operate in, you can make more informed decisions that will help your business succeed.

competitive intelligence (CI) a systematic program for. gathering and analyzing information about your. competitor's activities and general business trends. to further your own company's goals.

There are three main types of sustainable competitive advantage: differentiation, cost leadership, and focus advantage.

What are 5 ways that you can gather competitive intelligence? ›

These steps are to identify competitors, identify areas of concern, gather information, analyze the information found, report on the findings, and make a decision based on the results of competitive intelligence.

From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, barriers to entry, information availability, and location.

Defining a market, knowing your relative performance on the competitive landscape and driving healthy, repeatable customer experiences are all vital elements of competitor analysis. The last important part of a competitor analysis framework is the messaging around the good or service itself.

It consists of four types: perfect competition, oligopolistic markets, monopolistic markets, and monopolistic competition.

Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service.

Answer and Explanation: The six factors of competitive advantage are selection, quality, service, turnaround, price, and speed.

What are the 4 competitive growth strategies? ›

A competitive advantage is anything that gives a company an edge over its competitors, helping it attract more customers and grow its market share. A competitive advantage can take three primary forms: Cost advantage–producing a product or providing a service at a lower cost than competitors.

adjective. Britannica Dictionary definition of COMPETITIVE. [more competitive; most competitive] 1. : of or relating to a situation in which people or groups are trying to win a contest or be more successful than others : relating to or involving competition.

Macro factors that influence the competitive environment include economic, ecological, socio-cultural, political, legal and technology challenges that face a company. Competitive intelligence focuses on turning this external information into the insight required for strategic and tactical decision-making.

Competitive Advantage. Core Competence. Meaning. Competitive Advantage implies the virtue, that helps the firm to perform better than its rivals at the market place. Core Competence refers to the specific skills, knowledge and expertise, that is hard to be followed by the competitors.

Having a competitive strategy is most important when a company has a competitive marketplace and several similar products are available for consumers. This strategy helps you create a defensive position in your industry, along with generating a superior return on investment.

There are three competitive strategies that you can implement across your business: Cost-leadership strategies, differentiation strategies, and focus strategies.

There are two basic types of competitive advantage a firm can possess: low cost or differentiation.

What are the key factors of competitiveness? ›

Porter's Diamond of Competitiveness states that competitiveness depends on four main factors (Porter, 1998). These are input supply factors, market demand, firm structure, strategy and rivalry, and finally firms that are related and provide support, as well as supporting associations.

Michael Porter, the famous Harvard Business School professor, identified three strategies for establishing a competitive advantage: Cost Leadership, Differentiation, and Focus (which includes both Cost Focus and Differentiation Focus)[1].

Before we start on the ways that you can identify your competitors, let's first talk about the types of competition that you have in the field. There are 5 types of competitors: direct, potential, indirect, future, and replacement.

According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus.

The two main types of competitive advantages are comparative advantage and differential advantage.