Competitive Analysis refers to the process of identifying the competitors within a segment and analyzing their strengths and weaknesses in reference to the company’s product or service line. It forms a fundamental factor towards development of the brand’s marketing agenda. It will aid the identification of unique characteristics of the company offerings and finding the weak spots which can be strengthened using proper measures.
Competitive intelligence refers to the activity of gathering and analyzing information related to customers within a market, products and services as well as competitors which is directed towards aiding management to perform strategic planning and decision making.
In many cases both these elements have been considered similar. But competitive intelligence covers more area than competitive analysis. While the former is associated with research across various components of a business like customers, products, behavioral pattern and such like, competitive analysis is restricted to analyzing major players within the same segment. Hence it is important to discuss the process of performing both which is beneficial for every business.
Competitive analysis initiates with professional market research which includes focus groups and questionnaires. This approach gives valuable information regarding their product profile and marketing techniques. Information can be gathered through advertisements, brochures, annual reports and such like. The next important step is analyzing the gathered information. It is directed towards gaining insight through product evaluation, understanding the market share of the competitors, their business objectives and goals and identifying their strengths and weaknesses. The last and most significant step is determining the own business position in comparison to the competitors. This should be directed towards understanding the product and services line and its attractive features along with the negative pointers.
Competitive Intelligence is a different prospect from the former process. It looks in to the information of the competitors, customers, market trends and such like in a logical manner to predict the future initiatives. It has a different style of approach and analysis. It starts with a research regarding the objectives of conducting the process. After determining the objectives it is essential to look in to the existing data collection strategies related to competitive intelligence. After that the new strategies are developed related to the process. Then the access and integration systems are set up to gain benefit from the practice in future as well. The analysis and the reporting processes are initiated and dissemination is planned. The entire information collected and analyzed is presented systematically.
Therefore, it is quite evident that competitive analysis is similar to a part of competitive intelligence. The latter covers more strategic areas. With this it is also essential to note that both these processes require a high level of expertise and management for conducting. Currently the HR consultancy has broadened its service basket and ventured in to such specialties. Partnering with such firms not only make these processes effective but also streamlines the outcome. The level of assistance in conducting both the processes can also be regulated as per the contract.
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