This stage of analytical analysis includes an analysis of the strategies and new initiatives of competitors, their weaknesses and strengths allows not only to anticipate their next steps, but also to assess their impact on the strategy and actions of your company. Intelligence and analytical activities help the company to take a defensive position in response to the actions of competitors or to take an offensive if such an opportunity arises.
The best source of information about the strategy of competitors is to monitor the situation on the market and analyze the statements of managers of competing companies. Additional information to assess a competitor’s opportunities and immediate actions can be obtained from an analysis of its geographic location, strategic intentions, market share goals, position on the map of strategic industry groups, risk appetite. Other sources of valuable information about the competitor: its annual financial reports, statements from senior management, reports of independent analysts, articles in industry publications, press releases, information on its Web site and others, exposition of the company at exhibitions, conversations with customers, suppliers and former employees. Many companies have included industrial intelligence departments in their structure, which purposefully collect information about competitors, analyze and transfer to interested employees.
When assessing the company’s position in the competition, it is necessary to assess the potential of rivals. The company’s ability to maintain its market share depends on driving forces and competitive pressures, the presence or absence of competitive advantages, as well as on the plans of other market players regarding this company. If the strategy developer determines exactly which competitors will strengthen and which will lose their positions in the market, he will be able to predict the development of the competitive situation quite accurately.
A well-established collection of information about the opponent allows you to predict his actions, prepare effective countermeasures, predict his possible actions, and develop an optimal action plan for your company.