Business professionals use competitive intelligence to learn about the profits and behaviors of other businesses in their industries. For instance, professionals from an auto manufacturer might want to learn about the marketing tactics of a company that produces similar models that are sold for similar prices, this way they can learn how best to market and price their own cars. Some of the most common competitive intelligence services are firms that professionals can hire to provide intelligence analysis, industry forecasting, and market research. Some professionals prefer to use computer programs that act as competitive intelligence services that pull data from different sources and allow users to perform valuable analysis.
Before executives decide to branch out into new markets, they might choose to use competitive intelligence services. They might hire an intelligence firm to gather and analyze research regarding a new market. Among intelligence gathered by a firm there can be data regarding economic forecasts, successful businesses in the same industry, and spending habits of targeted demographics. This information can make it easier for executives to make decisions regarding how much to spend on market expansion. It also allows executives to perform necessary risk management.
Market research firms might also perform competitive intelligence services. Professionals hire market researchers when they want to learn which products consumers use and why. This research can provide valuable insight into how to market products, which features to highlight, and to which demographics to market products. Market researchers categorize demographics by factors such as age, location, profession, and income bracket.
Some computer programs perform valuable competitive intelligence services. For example, software that is connected to the Internet can gather all data related to competitor businesses. Users can view marketing presentations, financial data, and even research reports that have been published and made available for public consumption.
These competitive intelligence services also provide users with the ability to monitor the behaviors of their competitors in real time. For example, if a competitor business sends out a press release, intelligence software might send instant alerts to all relevant employees of an organization. Executives and analysts can use this information to determine which marketing strategies competitors are using.
By tracking the stocks and earnings of competitor businesses, professionals also can learn about the success of their competitors. By learning about the statuses of competitors, professionals can judge the statuses of their own companies. This helps them to learn about the overall value of their organizations, which has a large on impact on their plans for growth.