Competitor research is a specialized area of research aimed at the evaluation of the strengths and Weaknesses of competitors. This research provides both a defensive and offensive strategic context to identify threats and opportunities. Competitor profiling is used by many organizations as a major competitive management tool. Competitive intelligence (CSI) helps organizations analyze and select the most efficient marketing strategy to achieve their long-term competitive goals.
Competitor profiling is the process of identifying current market trends, analyzing competitive situations, and then exploring various options for improvement. It involves the process of building a competitive framework by collecting and evaluating competing information, then evaluating those data to identify important trends or emerging opportunities. The focus of competitive research is to understand and assess competitive situations and prospects, to establish and evaluate a business’s competitive environment, and to provide management with relevant data to support strategic decisions. The objective of competitive research is to increase knowledge about processes and policies, to build competitive capacities, to implement improvements in efficiency and productivity, and to ensure competitive advantage.
Competitor profiling requires an understanding of various factors that impact the competitive environment. These are industry trends, customers, suppliers, internal and external processes, policies, competition, and technology. These factors must be analyzed and then sorted to come up with an overall competitive situation. Various methods are used to sort the available information. Some of these methods include analysis of competitor past and present actions and growth rates, analysis of business strategies, and competitive research. All of these methods are used to create an overall competitive strategy.
Competitor profiling can also be done on a new market trend. New market trends are often very unique because of their ability to go unnoticed by previous and existing competitors. New trends come out of nowhere and thus, are harder to measure. However, if an organization identifies a new market trend and implements it into its strategy, it can become a competitive advantage.
Competitor research and competitor intelligence can also be applied in the secondary research arena. Secondary research deals with the collection of data about the activities of companies that are not directly related to the target market but which may cause similar or negative effects to the target market. These data can then be used to evaluate and pinpoint areas of opportunity and risk.
Competitive intelligence tools can also be utilized to analyze the activities of competitors and other businesses which are closely related to the target market. For instance, if there are businesses that sell supplies to medical facilities, they may find trends that involve purchasing less expensive supplies in order to keep costs down. Such activities may be viewed as a competitive advantage and thus, the importance of finding these trends can be seen. A number of tools have been developed to analyze the activities of competitors and those that are closely related to the target market. These include meta-search engine, content analysis tools, competitor archives, competitor listings and competitor analysis tools.
Competitor research and competitor intelligence can also be employed within organizations to evaluate whether their business strategies are effective. For example, a consulting firm may create a number of competitor questionnaires and ask staff members how satisfied their customers are with their work. This feedback can help the consulting firm to create a strategy that better suits the needs of their customers. However, before implementing any strategy, it is important for the consulting firm to first understand the nature and needs of their clients. If the client’s strategy does not improve profitability, it is important for the company to analyze the reasons for the failure and devise a more effective strategy.
Competitor research and intelligence are useful for all kinds of businesses. There are many ways that it can be used to examine competitors and their strategies. Whether it is performed by an individual or by a company as part of a competitive intelligence system, this type of research can be an essential part of improving a company’s profit margins. It can provide valuable information which allows a company to develop effective strategies and to better compete in the current marketplace.