2. What is Competitive Intelligence?What is Competitive Intelligence?
A systematic and ethical program forA systematic and ethical program for
gathering information aboutgathering information about
competitors and general businesscompetitors and general business
trends to further your own company’strends to further your own company’s
goalsgoals
3. Why CI?Why CI?
Playing the Game BetterPlaying the Game Better
Focus on existingFocus on existing
competitors/strategiccompetitors/strategic
positionposition
Leverage value chainLeverage value chain
strengthsstrengths
Incrementally improveIncrementally improve
existing strategies/tacticsexisting strategies/tactics
Play the Game DifferentlyPlay the Game Differently
New market opportunityNew market opportunity
New customersNew customers
Develop/leverage newDevelop/leverage new
value chain strengthsvalue chain strengths
New strategies/tacticsNew strategies/tactics
5. RecommendationsRecommendations
Analysis of DataAnalysis of Data
Sources of DataSources of Data
Competitor Intelligence PyramidCompetitor Intelligence Pyramid
Industry experts/analysts
Industry publications
Trade shows/conferences
Advertisements/PR
University research centers
Financial
Court documents/patents
Suppliers/customers
Newspapers/business wire
Help wanted ads
Reverse engineering labs
6. RecommendationsRecommendations
Analysis of DataAnalysis of Data
Sources of DataSources of Data
Competitor Intelligence PyramidCompetitor Intelligence Pyramid
Value chain analysis
Ratio analysis
Benchmarking
Cost analysis
Trend analysis
Personality profiling
Wargaming/scenario
planning
Competitive behavior
analysis
7. RecommendationsRecommendations
Analysis of DataAnalysis of Data
Sources of DataSources of Data
Competitor Intelligence PyramidCompetitor Intelligence Pyramid
Track Existing Rivals
Anticipate New Rivals
Inform Strategy:
Identify own/competitor’s
strengths/weaknesses
Early warning system
Plan of attack/retaliation
9. CI ParadoxCI Paradox
Many Global 1000 companies don’t haveMany Global 1000 companies don’t have
full-scale CI unitsfull-scale CI units
Most Global 1000 executives believe thatMost Global 1000 executives believe that
success depends on:success depends on:
Looking aheadLooking ahead
First-mover advantageFirst-mover advantage
Strategic flexibility and maneuveringStrategic flexibility and maneuvering
10. Future Objectives
How do our goals compare
to our competitors’ goals?
Where will emphasis be
placed in the future?
What is the attitude toward
risk?
Competitor Analysis
What drives the competitor?
11. Competitor Analysis
What is the competitor doing?
What can the competitor do?
Future Objectives
How do our goals
compare to our
competitors’ goals?Where will emphasis be
placed in the future?
What is the attitude
toward risk?
Current Strategy
How are they currently
competing?
Does this strategy
support changes in the
competitive structure?
12. Competitor Analysis
What does the competitor believe
about itself and the industry?
Future Objectives
How do our goals
compare to our
competitors’ goals?Where will emphasis be
placed in the future?
What is the attitude
toward risk?
Current Strategy
How are we currently
competing?
Does this strategy
support changes in the
competition structure?
Do we assume the future
will be volatile?
Are we assuming stable
competitive conditions?
What assumptions do our
competitors hold about the
industry and themselves?
Assumptions
13. Competitor Analysis
What are the competitor’sWhat are the competitor’s
capabilities?capabilities?
Future Objectives
How do our goals
compare to our
competitors’ goals?Where will emphasis be
placed in the future?
What is the attitude
toward risk?
Current Strategy
How are we currently
competing?
Does this strategy
support changes in the
competition structure?
Do we assume the future
will be volatile?
Are we operating under
a status quo?
What assumptions do our
competitors hold about the
industry and themselves?
Assumptions
What are my competitors’
strengths and weaknesses?
How do our capabilities
compare to our
competitors?
CapabilitiesCapabilities
14. Future Objectives
How do our goals
compare to our
competitors’ goals?Where will emphasis be
placed in the future?
What is the attitude
toward risk?
Current Strategy
How are we currently
competing?
Does this strategy
support changes in the
competition structure?
Dynamic Head-to-Head Rivalry
Do we assume the future
will be volatile?
Are we operating under
a status quo?
What assumptions do our
competitors hold about the
industry and themselves?
Assumptions
ResponseResponse
What will our competitorsWhat will our competitors
do in the future?do in the future?
Where do we have aWhere do we have a
competitive advantage?competitive advantage?
How will this change ourHow will this change our
relationship with ourrelationship with our
competition?competition?
CapabilitiesCapabilities
What are my competitors’What are my competitors’
strengths and weaknesses?strengths and weaknesses?
How do our capabilitiesHow do our capabilities
compare to ourcompare to our
competitors?competitors?
15. Strategic Group Map: BeerStrategic Group Map: Beer
(Pre-light / Pre-microbrew)(Pre-light / Pre-microbrew)
Dark/Full
Light
Low Price High Price
Amber
Regular
Heineken
Miller
Bud
Old Swill
Guinness
16. Strategic Group Map: BeerStrategic Group Map: Beer
Dark/Full
Light
Low Price High Price
Amber
Regular Old Swill
Guinness
Blackened Voodoo
Anchor Porter
Amstel
Cardinal
Miller Lite
Bud Ice
Sam Adams
Bass Ale
Pilsner Urquell
Killian’s Red
Red Wolf
Amber Bock
Lowenbrau
Killian’s Brown
Lowenbrau Dark
Milwaukee’s
Best Light
Bud
Miller
