Competitor analysis is a key input in the strategic planning process. It enables the organization to analyze its own position in the industry. While the need for the profile is generally clear, the end users are typically ill-defined. As a result, the information presented is misaligned with their needs, resulting in a sub-optimal return on the investment made by the analysts. This white paper presents a framework for efficiently creating competitor profiles that meet the needs of multiple users in the organization.

1. Competitor profiling:
Many needs behind the need
ValueNotes White Paper
April 2012

2. Competitor analysis is a key input in the strategic planning process. It
enables the organization to analyze its own position in the industry. While
the need for the profile is generally clear, the end users are typically ill-
defined. As a result, the information presented is misaligned with their
needs, resulting in a sub-optimal return on the investment made by the
analysts. This white paper presents a framework for efficiently creating
competitor profiles that meet the needs of multiple users in the
organization.
Executive Summary
Profiling is a key tool that enables organizations to undertake competitor analysis. They:
o Cut out the “noise” and provide relevant insight into the hearts (resources,
Competitor profiling: Many needs behind the need
capabilities and cultures) and minds (objectives, strategies and assumptions) of an
organization‟s competitors
o Enable an organization to flag off areas that need attention and further investigation
Competitor intelligence needs of different functional units vary. In order to avoid
information overload to users of the profiles from different functional units, their individual
needs must be recognized. Further, an understanding of key pain points of each internal
client group is essential for customizing analysis and presentation to requirements.
To derive maximum value from competitor profiles, competitive intelligence (CI)
professionals need to master the art of packaging for different customer groups. The old
„everything for everybody‟ adage needs to be re-looked at, to instead deliver ‘just the right
thing for each person’, making CI dissemination more meaningful.
White paper | April 2012 | Competitor profiling: Many needs behind the need 2

3. Contents
1. What are competitor profiles and how do they fit into competitor analysis? ................................... 4
2. Why are they still relevant, in the age of information? ........................................................................ 4
3. Who are the different internal clients for competitor profiles and how do their needs
differ?....................................................................................................................................................... 5
4. How do we make the most out of competitor profiles, for these different users? ............................ 6
5. A sample competitor profile framework ............................................................................................... 7
6. Final thoughts… ..................................................................................................................................... 8
Competitor profiling: Many needs behind the need
White paper | April 2012 | Competitor profiling: Many needs behind the need 3

4. 1. What are competitor profiles and how do they fit into competitor
analysis?
Competitor analysis is a key activity in the strategic planning process. It presents to the decision-makers; the
evolving competitive environment in which a company operates, a comprehensive view of competitors,
competitor benchmarking, analysis and recommendations for current and future strategy development, and
forecast of future business opportunities and threats.
Tracking the competition is critical in understanding current behavior and predicting future direction. Profiling
is a key tool that enables organizations to undertake competitor analysis. The information areas in a profile
serve to provide fresh insight into the hearts (resources, capabilities and cultures) and minds (objectives,
strategies and assumptions) of an organization‟s competitors. Competitor profiles thus enable an
organization to undertake extensive competitor analysis, by identifying key information (for each function) to
flag off areas that need further investigation. E.g. If the competitor‟s margins are much higher than ours – we
know we need to look at our own and their cost structures. Similarly, for the marketing function, if a
competitor website ranks higher on SEO, marketing needs to sit up and take notice. Flagging off top-level
warning signs is a critical function of competitor profiles.
Depending on the current level of knowledge, we may choose to start with a basic profile of a competitor and
move to increasing levels of granularity, based on our diagnosis of which areas of the competitor‟s
operations pose a threat to our position and performance.
Competitor profiling: Many needs behind the need
2. Why are they still relevant, in the age of information?
In today‟s „information overload‟ age, there is a wide array
of information available about a company‟s competitors.
However, it is more than likely that not all of this
information will merit equal importance in a competitor
profile. Profiles help filter out the noise, presenting only the
most relevant data and top-level analysis to stakeholders.
As competitive intelligence gathering moves to a dynamic,
multi-channel method, competitor profiles must evolve and
deliver more value accordingly. What an inebriated
executive may spill on Twitter about his company needs to
be corroborated and analyzed against the entire firm‟s
dataset, to really make sense. This is all the more essential
with “counter intelligence” tactics developing online.
And even when we have all this filtered information, a CI profile is only useful when it can contribute
meaningfully towards solving business problems. Meaning, less chatter, more analysis. Profiles that read
like Google News Alerts (or even expensive information databases) are surely redundant. Good competitor
profiles must facilitate strong analysis; it is enabling the extrapolation, massaging and scenario testing that
still offers competitor profiles a place at the CI table.
White paper | April 2012 | Competitor profiling: Many needs behind the need 4

5. A key property of a CI deliverable is that it must be actionable by decision-makers that use it. To that extent
a standalone competitor profile is not a CI deliverable; the competitor analysis that it facilitates, is.
3. Who are the different internal clients for competitor profiles and how do
their needs differ?
Competitor profiles are potentially useful to multiple business functions within an organization. There is a
wealth of valuable information that can be cross-examined and „actioned‟ by different organizational units, to
truly benefit from competitor analysis.
In our experience, most often, the need for the profile is generally clear, but the end users are not clearly
identified. Hence, the profile is created with an all encompassing scope of content. The breadth of
information presented is misaligned with the needs of the users and under-utilized overall. It creates an
information overload for the personnel, resulting in a sub-optimal return on the investment made by CI
professionals.
When creating a competitor profile, analysts must first identify the business users of the intelligence. The
need, for instance may come from the marketing function, but analysts can recommend a wider audience
from other functions such as finance, HR, sales, etc. so as to increase the utility of the profile within the
organization. CI analysts can present their analysis in the context of these varied business needs.
Competitor profiling: Many needs behind the need
a) CXO level – The senior management audience is concerned with the implications of various strategic
decisions, at the corporate level. This means they don‟t look for tactical and data heavy profiles. Rather, they
value the competitor analysis that comes out of profiling of competitors - early warning signs, business
threats and opportunities.
b) Line of business (LOB) executives (VPs, Directors, etc.) – At this level, executives look for more
detailed profiles that present analysis, as well as hard data about market conditions and competitor
benchmarks (market shares, functional unit information, etc.).
c) Functional units – There is large amount of information about competitors that functional units
(especially customer facing) can use to plan for the future. At this level, we‟re talking real time tactical inputs
that guide operational level decision making, in response to competitive conditions. The most prominent
units for competitor profiles are illustrated in the adjoining figure (though this will vary slightly with different
industries).
Which brings us to the next question…
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6. Exhibit 1: User groups for competitor profiles
Finance
Function
LOB
Sales and Human
Marketing CXO Resources
Users of
competitor
profiles
Research
and
Operations
Development
4. How do we make the most out of competitor profiles, for these different
users?
Competitor profiling: Many needs behind the need
Now that we‟ve outlined the multiple internal beneficiaries of competitor profiles, one thing becomes
apparent. To derive maximum value from these profiles, CI professionals need to master the art of
packaging for different customer groups. The old „everything for everybody‟ adage needs to be re-looked at,
to instead deliver ‘just the right thing for each person’, making CI dissemination more meaningful.
Before even beginning to collect intelligence for compiling competitor profiles, practitioners must broach the
subject with a wide (but relevant) audience in the organization (some of which have been identified above).
An understanding of major pain points of each internal client group is essential. Based on this, CI
professionals can understand the common and independent information areas (key factors and variables
which address pain points) that are of interest to these stakeholders. This will enable them to understand
how each information area means different things to varied business users. Most importantly, practitioners
develop a better understanding of the end objectives of the activity, and analysis and presentation can then
be customized to requirements.
Exhibit 2: Process for creating actionable competitor profiles
Identify Understand List common and Collect Customised
users their pain independent information packaging for
points information areas user groups
White paper | April 2012 | Competitor profiling: Many needs behind the need 6

7. 5. A sample competitor profile framework
The following table elaborates on the most meaningful elements of a competitor profile, as they are used
today. That is, as far as generic industry-agnostic profiles go; these are meant to be customized according
to the needs of the competitive environment a particular industry faces.
Exhibit 3: The meaningful elements of a competitor profile
Information area Details usually included in a competitor profile
General Operational - Name, Location, Short description, History, Organizational structure, Management
Information team, Contact details, Stock information
Strategic - Mission and vision, Goals, Objectives, Future plans, Positioning, Synergies, Corporate
Strategy portfolio, Strengths and weaknesses
Operational - Resources/capabilities, Core competencies, Innovations
Strategic - Number of products/services, Breadth of product lines, Share of revenues, Quality,
Products and Embedded customer value, Projected new products/services
Services Operational - Current market shares by product and product line, Workforce and revenue split by
products/services, Quality levels/framework, Product/service delivery mechanisms
Strategic - Market segmentation strategies, Branding/Image, Probable growth drivers,
Advertising/promotions, Market research capability, Customer service emphasis, 4 P parameters,
Sales and Sales/ channel strategy, Product development
Marketing Operational - Sales network, Channel partner network, Marketing spend, Key customers,
Customers types and numbers, Geographical distribution of customers, Customer satisfaction
Competitor profiling: Many needs behind the need
levels
Strategy - Delivery models, Engagement models, Outsourcing, Sourcing strategy
Operations Operational - Delivery/ manufacturing centers – size & locations, Delivery capabilities/ capacity,
Process technology, Key suppliers, TQM, Customization, Overhead costs
Strategic - Level of training, Flexibility, Talent sourcing strategies
Operational - Number of employees by geography, Type & qualifications, Attrition rates, Union
Human Resources relations
Function-specific- Hierarchy, Size, Compensation structure, Qualifications, Key functional head
profiles, Key promotions, Hires and exits, Depth of managerial talent
Strategic - Capital structure
Financial Operational - Financial statements, Key financial ratios – liquidity, Profitability, Activity analysis,
Information Capital market analysis, Stock performance
Function-specific - Budgets and operational overheads
Strategic - R&D strategy, Internal technology strategy, Access to outside expertise through
licensing, Alliances, Joint ventures
Technology Issues
Operational - Proprietary technology, Patents, Copyrights, Process technology, Information and
communication infrastructure, R&D expertise
Source: ValueNotes Research (2012)
Following the theme we‟ve developed thus far, it is possible to map out the applicability and potential
benefits of presenting relevant information areas to different internal client groups. In the format presented
below, we have considered the five functional organization units identified earlier – Finance, HR, Operations,
Research & Development and Sales & Marketing. It is easily possible to add others as required.
White paper | April 2012 | Competitor profiling: Many needs behind the need 7

8. Exhibit 4: Competitor profile with functional usability mapping
Information area Finance HR Operations R&D S&M
Strategic
General Information Y Y Y Y Y Operational
Function- specific
Y Y Y Y Y Strategic
Strategy Y Y Y Y Operational
Function- specific
Y Strategic
Products and
Y Y Y Y Operational
Services
Function- specific
Y Y Y Strategic
Sales & Marketing Y Y Y Operational
Function- specific
Y Y Y Y Strategic
Operations Y Y Y Y Operational
Function- specific
Y Y Y Strategic
HR Y Y Operational
Y Y Y Y Y Function- specific
Y Strategic
Financial Information Y Y Y Operational
Competitor profiling: Many needs behind the need
Y Y Y Y Y Function- specific
Y Strategic
Technology Issues Y Y Operational
Function- specific
Source: ValueNotes Research (2012)
This functional usability mapping highlights the different needs that functional units have for competitor
profiles, and how they may be addressed at a broad level. If we were to present the entire superset (Exhibit
1) to say, an HR professional, it would most likely be unusable due to an information overload, and lack of
relevancy. Imagine those data-heavy profiles (and accompanied analysis), created for several competitors –
why would HR be interested with, for example, strategic level R&D inputs? Instead, a customized HR profile,
as mapped above, would better help it identify its early warning signals, and raise flags for further
investigation (e.g. significantly higher retention rates for competitors). This mapping exercise, naturally,
needs to be granular and customized to address a company‟s specific competitive environment and CI
needs.
6. Final thoughts…
We have highlighted the different potential patterns of (and opportunities for) consumption of competitor
profiles by different „internal client groups‟ in an organization that will enable CI analysts realize greater ROI
on their efforts. We would like to reiterate that this is meant to be an illustrative „matching‟ exercise, which
will hopefully stimulate more discussion among our CI peers!
White paper | April 2012 | Competitor profiling: Many needs behind the need 8

9. ValueNotes is a leading provider of research-based business
intelligence. Over the past decade, through our research products
and research support services, we have helped organisations
across diverse industries, markets and geographies in gaining
competitive advantage. Our strong capabilities in collecting,
interpreting and analysing data enable us to provide actionable
intelligence to our client.
We take pride in our ability to provide insights as an independent,
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Research Services: we provide a wide range of bespoke
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studies, desk research, news tracking
Information Products: we publish proprietary market
intelligence on the (services) outsourcing industry – in BFSI, e-
learning, engineering, healthcare, legal and publishing – with an
emphasis on knowledge services or KPO.
Competitive Intelligence Consulting: with over a decade‟s
Competitor profiling: Many needs behind the need
experience in conducting competitive intelligence (CI) and
advising firms on their CI strategy, we are able to assist
companies implement CI to gain a strategic advantage.
Learning & Development: a consolidation of our own
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ValueNotes.com: India‟s leading financial & equity research
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markets.
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All rights reserved
For more information, please contact:
Varsha Chitale
Director, Competitive Intelligence Practice
T: +91-20-6623 1767 / 1743
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