Competitive Intelligence Report: Strategy Formulation and Analysis

This report explores the crucial role of competitive intelligence in modern business strategy. It begins by defining competitive intelligence and its importance in understanding rival firms' strategies and anticipating future moves. The report aims to identify the impact of competitive intelligence on company performance, its utility in developing business unit strategies, and its role in identifying market opportunities and threats. The literature review highlights the impact of competitive intelligence on business performance, strategy formulation, and identifying threats and opportunities. The research methodology outlines the use of qualitative data collection through thematic analysis, focusing on interviews with top managers. The report concludes that competitive intelligence is essential for business success, aiding in strategic planning, product positioning, and market entry. The analysis also stresses the need for reliable data sources and continuous monitoring of market trends to maintain a competitive advantage.

Competitive Intelligence

Table of Contents
INTRODUCTION...........................................................................................................................1
Literature review..........................................................................................................................2
Research methodology.................................................................................................................4
RFERENCES...................................................................................................................................7

INTRODUCTION
In today era, business environment is very complex and companies needs to update with
changes that are occurring in rival firms’ business strategies. With changes in business
environment, competitors also change their business strategy. Hence, companies are required to
keep themselves update with changes which are brought by the peer firms in the domestic and
international market. In order keep an eye on these changes, competitive intelligence is used by
the business firms. Competitive intelligence is a kind of system under which data is collected and
analyzed by the business firms. On the basis of analysis of data intensity of competition is
identified. In order to formulate a strong business strategy it is inevitable to analyze data. Facts
provide lots of information and bring many untouched and unidentified aspects of the rival firms’
business strategies (Wright, 2014). It also helps in anticipating competitors business strategies.
By collecting and analyzing data, companies measure impact of change in business strategies on
the organization’s profitability. Hence, competitive intelligence plays an important role in
growth of an organization. As a result, more and more companies irrespective of their size are
using corporate intelligence for preparing their business strategies. The main benefit that
competitive intelligence gives to companies is that by using these firms prepare their strategy in
right direction. If corporate does not use competitive intelligence then they will not be able to
prepare strategy in the right way. In absence of corporate intelligence managers may consider
limited factors and may formulate a weak business strategy. Hence, it is necessary that
companies should use competitive intelligence in their business practice (Fleisher and
Blenkhorn, 2003). By using competitive intelligence firms can shape counter competitive
strategies in order to beat their competitors in the market. Thus, corporate strategy is like a
weapon that must be used by the business firms prudently in order to get productive results.
Aims The research aims at identifying importance of corporate intelligence in formulation of
business strategy
Objectives
The research will be guided by the following objectives.
 To identify impact of competitive intelligence on the company’s performance.
 To identify utility of competitive intelligence for development of corporate business unit
strategies.
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 To identify level to which competitive intelligence helps in identifying opportunities and
threats in business environment.
 To access effectiveness of positioning of the product by the competitors in the market. To identify the extent to which corporate intelligence can be used for entering into the
market.
Research questions
 Does competitive intelligence affects business performance of the companies?
 What is the utility of competitive intelligence in respect to development of corporate
business unit strategies?
 To what extent competitive intelligence helps in identifying opportunities and threats in
the business environment?
 Is competitive intelligence helps in measuring effectiveness of positioning of the product
by the competitors in the market?
 Does competitive intelligence assists in entering into new market?
Literature review
According to Xu and Mark (2007) competitive intelligence to a large extent affects
business performance and it brings positive change in the same. This is because collection and
analysis of data under competitive intelligence gives a direction to an organization and also
shows a path in which a firm must follow in order to formulate a business strategy. In contrast to
this, it asserts that use of competitive intelligence does not guarantees that an organization is on
the right track. Data collection is done by a human being and mistake can be committed while
doing the same. There are numerous facts and if the specific information is not collected then
organization may go in wrong direction and may formulate a wrong business strategy. Thus,
managers merely by using corporate intelligence cannot assure that everything will be fine and
they are in the right direction. While collecting data managers needs to make sure that all sort of
required facts are collected from reliable sources.
In the views of Qiu, (2008) corporate intelligence is playing a prominent role in the
strategy formulation and in the absence of such kind of system it is very difficult to formulate a
powerful business strategy. In today era, there are numerous factors that affect preparation of
business strategy. Moreover, there are numerous factors which are required to be considered
while formulating a corporate strategy. In absence of corporate intelligence it is not possible to
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consider each and every factor in business strategy formulation process. Hence, business
strategy plays a decisive role in preparing strong and more powerful business strategy. In the
views of Dishman, and Calof (2008) corporate intelligence acts a pioneer for managers of the
business organizations. It acts a supportive factor for business organizations. Without it no
business firm can think about creating corporate strategy.
Saayman and et.al (2008) asserts that corporate intelligence helps in identifying threat
and opportunities in the business environment. In corporate intelligence, data is collected about
change in business strategies in alignment to change in business environment. By analyzing data
current trend is identified and it is compared with previous data. Positive and negative changes in
on comparison of facts related to business environment helps in identifying threats and
opportunities in the market. Thus, in this way corporate intelligence helps in identifying threats
and opportunities in the market. Not only this it also assists in detecting the companies that takes
first moves in relation to change in the business environment. Hence, observation of trend helps
business in identifying perfect time when they must bring change in their business strategy.
According to Helm, (2011) companies position their product on the specific theme. By
doing this companies can create special image of their product in the eyes of customers. If
positioning is good and unique then proliferation is observed in company sales. Corporate
intelligence helps in identifying impact of change in product positioning on its sales figures.
Ultimate result of using corporate intelligence in this regard will be that company will be able to
identify positioning on which higher profit is earned by rival companies. By using this fact
company will get a direction for formulating its own positioning strategy. Hence, corporate
intelligence plays great role in improving marketing efforts of the business firms.
In views of Punch, (2009) corporate intelligence assists companies in entering into new
market. Whenever, any firm decides to enter in the new market it does not know much about that
market. It is corporate intelligence by using which company comes to know a lot of things about
the new market. By analyzing collected data, the firm identifies spots where it needs to pay
special attention in order to make its business successful in new market in which it intends to
enter. Hence, it can be said that corporate intelligence has lots of benefits and by using it the
company can give stiff competition to the rival firms.
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Research methodology
Research techniques- There are two kinds of data that can be collected like qualitative and
quantitative. Qualitative data are those data that are not in figures and are in the text form. On
other hand, qualitative data is a data that is collected in numeric form. Quantitative data after
collection can be analyzed using various tools like mean, median and mode etc. In our research
qualitative data will be collected in order to understand impact of competitive intelligence on the
company performance. In order to withdraw useful conclusions for the data collected from
qualitative techniques, thematic technique will be applied (McBurney and White, 2009). Under
this technique, charting of the facts received in data collection is done. On the basis of
interpretation of chart analyst, it will arrive at specific conclusion. The topic of research is
corporate intelligence and only top managers can give information about its impact on corporate
performance. Hence, quantitative techniques are used for data collection instead of quantitative
techniques. In research, due to mentioned reason thematic techniques are used for data
collection. In case of quantitative techniques tools like statistics and analysis of facts are used to
analyze huge number of figures (Myers, 2013). On the basis of results of these techniques,
analyst deduces some specific results. However, qualitative techniques are suitable for research
and due to this reason mentioned techniques are selected instead of quantitative techniques.
Research approach- Approach refers to the way in which research is conducted. There
are two approaches of data collection namely inductive and deductive approach. Both
approaches are opposite of each other. In case of inductive approach facts are observed and then
pattern is identified. On the basis of observation and pattern hypothesis is prepared which is
tentative in nature. After preparation of hypothesis theory, it is reviewed in respect to topic of
research. On other hand, in case of deductive approach process is opposite (Panneerselvam,
2004). In case of this approach first of all theory is reviewed and then on the basis of review and
aims and objectives of research hypothesis is formulated. After formulation of hypothesis facts
are collected and analyzed. In last step, calculation is done and one of the hypotheses is proved
correct. Our research is qualitative in nature and due to this reason inductive approach is selected
for the research.
Research nature- There are number of research designs like exploratory, explanatory and
descriptive research. All these research designs are different from each other. Research designs
are selected as per requirement of research. Some of the research designs are as follows.
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Exploratory research design- Exploratory research design is used when researcher does
not know anything about the research topic. By using this research design lots of information can
be explored. These create a broad understanding about research topic among researcher and on
the basis of comprehension of research topic, researcher conduct his research in a proper manner.
There are many techniques that are used under this research design like focus group, expert
survey and open ended questions. Under focus group technique there is a group of three to four
members and there is a moderator (Pelissier, 2008). He conducts entire discussion. In case of
focus group, research is conducted on specific topic and all respondents give their opinion on
discussed topic. On the basis of topic researcher arrived on the particular point. Hence, through
this technique data is collected and deep understanding of researcher on research topic is done.
In case of expert survey, there is a panel of experts that have deep knowledge of the research
topic. These experts provide a lot of information about current and past trends related to the
research topic (Punch, 2009). Thus, this technique is also very useful and data collected from
these techniques are highly reliable.
Descriptive research design- This research design is used when researcher has some
knowledge of the research topic. In other words, it can also be said that researcher used this
research design when he has lot of knowledge about the subject of the research. There are many
methods that are used in this research design. Some of the most common techniques of research
are observation, case study and survey method. In case of observation, people working at
specific place are observed and their working behavior is analyzed. This provides a lot of input
for research. Other method used under this research design is the case study (Saunders, Lewis,
Thornhill, 2007). In this method, case study related to topic of research is reviewed and
qualitative and quantitative data is collected from the research. In case of survey method, a data
is collected from specific sample size that is taken from the population of the specific geographic
area. In this way exploratory research design descriptive research design is also very helpful in
the research.
Experimental research design- This research design is used when researcher makes an
attempt to control all the factors that may affect results of an experiment (Sekaran, 2006). In this
research design various techniques are used that may give appropriate results on the research. In
this research design physical control and statistical control techniques are used by the researcher
to control factors which affects research results.
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Our research is qualitative in nature and due to this reason exploratory research design is
selected for the research. As mentioned above, in this research there are several research
techniques like expert survey and focus group etc. From these techniques lots of data that is
reliable in nature can be collected from the respondents. Data collected will be qualitative in
nature. Hence, exploratory research design is selected for the research.
Time Line
The time line for completion of research work has been presented underneath in the form of
Gantt chart and network diagram.
Table 1: List of activities
Sr. No. Activities List of activities Weeks Preceding activities
1 A Supervisor discussion 1
2 B Preparation of proposal 1 A
3 C Submitting the proposal 2 B
4 D
Acknowledgement by
supervisor 1 C
5 E Literature review 5 D
6 F Data collection 4 D
7 G Data analysis 4 E,F
8 H Interpreting outcomes 3 G
9 I Preparation of project report 4 E,G
10 J Conducting review 2 I
11 K Finalizing the project 1 J
12 L Project submission 1 K
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Figure 1: Gantt chart
Figure 2: Network diagram
Critical path: 1-2-3-4-5-7-9-10-11-12
Critical path: 22 weeks
As per the network diagram, minimum of 22 weeks will be required to complete the
research work.
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RFERENCES
Books & journals
Dishman, L. P. and Calof, L. J.,2008. Competitive intelligence: a multiphasic precedent to
marketing strategy. European Journal of Marketing. 42 (7/8).pp.766 – 785.
Fleisher, S. C. and Blenkhorn. L. D.,2003. Controversies in Competitive Intelligence: The
Enduring Issues. Greenwood Publishing Group.
McBurney, D. and White, T. 2009. Research Methods. Cengage Learning
Myers, M.D., 2013. Qualitative research in business and management. Sage.
Panneerselvam, R., 2004. Research methodology. PHI Learning Pvt. Ltd.
Pelissier, R., 2008. Business Research Made Easy. Juta & Co.
Punch, F. K., 2009. Introduction to Research Methods in Education, SAGE.
Punch, F. K., 2009. Introduction to Research Methods in Education, SAGE.
Qiu, T.,2008. Scanning for competitive intelligence: a managerial perspective. European
Journal of Marketing. 42 (7/8). pp.814 – 835.
Saayman,A. And et.all.2008. Competitive intelligence: construct exploration, validation and
equivalence. Aslib Proceedings.60(4).pp.383 – 411.
Saunders, M., Lewis, P., Thornhill, A., 2007. Research Methods for Business Students, 4th
edition. Prentice Hall.
Sekaran, U., 2006. Research Methods for Business: A Skill Building Approach. John Wiley &
Sons.
Wright, S., 2014. Competitive Intelligence, Analysis and Strategy: Creating Organisational
Agility. Routledge.
Xu. and Mark.,2007. Managing Strategic Intelligence: Techniques and Technologies:
Techniques and Technologies. Idea Group Inc (IGI).
Online
Helm, B.2011. How to Use Competitive Intelligence to Gain an Advantage. [Online].
Available through :< http://www.inc.com/magazine/20110401/how-to-use-
competitive-intelligence-to-gain-an-advantage.html>. [Accessed on 16th Nov.2015].
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