All too often, the competitive efforts of many companies are internally focused. Many businesses seek to develop better products and services without knowing enough about their competition.
To truly hone your competitive edge, you need to constantly ask one simple question: What are they up to now? And the best way to get answers is through the practice of competitive intelligence.
Legal and ethical data gathering
In the information age, companies have a strategic imperative to analyze every bit of data they can on what the competition is doing at all times. Of course, at all times doesn’t mean at any cost. Competitive intelligence is the process of legally and ethically gathering data on competitors. And your purpose isn’t to undercut what they’re doing but to anticipate trends, compare best practices and target opportunities.
What you need to track
Specifically, you need to stay apprised of your competitor’s product and service lines, financial standing, and market position. You should also track whether the competition is expanding or contracting. Mergers, acquisitions or strategic alliances could mean you need to play defense, while closures or bankruptcy may mean it’s time to go on the offensive.
Crafting a policy
Before you dive into competitive intelligence, it’s important to establish a formal policy governing your efforts. Please contact our firm for assistance. We can help you craft a policy, in consultation with your attorney, that enables you to gather the right information while minimizing the inherent risks involved.