As competitive pressures intensify, more companies are establishing formal competitive intelligence programs. Many are successful, but too often the results fall below expectations.

To achieve the best opportunities for success, organizations should resist the urge to collect large amounts of raw data; and individuals have to learn the appropriate techniques to generate specific kinds of information. It is also important to remember there will be gaps in any system, making the process an ongoing one.

Target information. For most organizations seeking to track competitors, there are literally reams and reams of material available. Busy managers, however, do not have time to review copious amounts of data.

For a program to work effectively, it is imperative to sort and retain only the most pertinent information for analysis. This enables conclusions to be easily compressed into meaningful summaries.

Surprisingly, it is our experience that most (but obviously not all) types of information can be obtained. It is a matter of locating the source, or the right individual and using the appropriate techniques. (In this regard, it is not recommended that any company, or third party under contract, misrepresent themselves.)

Over time, the best programs go beyond simply supplying facts and, instead, provide enlightened insights into markets. (Upon locating most pieces of the puzzle, what might have looked initially like unrelated bits of information, suddenly become profoundly illuminating.)

• pricing
• market share changes
• new products & strategies
• technological developments
• joint ventures
• strategic alliances
• expansion plans
• changes to overall competitive strategy

To generate this intelligence, there are a multitude of published or secondary sources such as:

• annual reports
• financial statements from e.g. governments
• on-line data bases
• industry periodicals including daily newspapers
• corporate directories
• vendor's promotional material/advertising
• trade associations
• local planning/business development offices

However, no competitive intelligence program can survive using only published data.

• suppliers to the industry
• customers and non-customers
• trade associations
• industry & government officials
• other consultants
• individuals at trade shows/conferences
• security analysts
• journalists
• competitors themselves

The most elusive information usually comes via qualitative, one on one depth interviews with the appropriate parties. The technique requires more than simply using an experienced interviewer but, rather, achieving a business person to business person dialogue. The interviewer must build upon each piece of information as it is revealed.

When interviewing customers and prospects, the types of individuals having regular contact with employees of competitors are usually the most suitable respondents.

On the other hand, in interviewing competitors themselves, the most comprehensive information generally is acquired from senior managers, e.g. Presidents, Vice Presidents, General Managers. Our experience is that the more senior the individual, the more forthcoming they are in the interview. There is less apprehension: they typically would rather see accurate information conveyed to the marketplace rather than to have competitors make unwise decisions, detrimental to the entire industry (based upon faulty information).

There are no rigid rules, but a qualitative approach usually is appropriate for topics such as:

• costs, profits
• new products not yet introduced
• expansion plans
• selling skills, effectiveness
• technology

Some of the above intelligence can also be collected using quantitative techniques (e.g., structured questionnaires, telephone), but generally this approach is usually more pertinent to:

• measuring market shares
• perceptions, attitudes
• pricing
• behavior

An approach which works well in one environment may be completely unsuitable in another.

Different businesses have distinct critical success factors, and the competitive intelligence operation should probably be built around these components.

The objective is to achieve competitive advantage and the design stage is critical. A well-formulated market intelligence program allows companies to outmaneuver competitors by identifying and capitalizing on their weaknesses. Surprise attacks are prevented. In the best of situations, the organization is able to equip itself to profitably capture market share. 


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