COMPETITIVE INTELLIGENCE Meaning and
Definition
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Competitive intelligence refers to the systematic process of gathering, analyzing, and interpreting information about a company's competitors in order to gain insights into their strategies, strengths, weaknesses, and market positioning. The purpose of competitive intelligence is to enable organizations to make informed decisions and gain a competitive advantage in the market.
In a rapidly changing business environment, gathering intelligence on the competitive landscape is crucial for ensuring long-term success. Competitive intelligence involves monitoring and analyzing a wide range of sources, both internal and external, to collect data on competitors' products, marketing tactics, pricing strategies, customer relationships, and overall performance. This information is then meticulously analyzed to identify patterns, trends, and potential opportunities or threats.
The process of competitive intelligence involves various research techniques such as conducting competitor interviews, analyzing financial reports and statements, monitoring social media activities, attending industry conferences, and accessing public databases. Additionally, organizations may utilize technological tools and software to gather data and automate the analysis process.
The insights obtained through competitive intelligence allow companies to anticipate market trends, identify gaps in the market, recognize emerging competitors, and adjust their strategies accordingly. It helps them to stay ahead of the competition, improve their decision-making, and develop effective marketing and sales strategies. Ultimately, competitive intelligence aids in improving an organization's overall competitiveness, profitability, and market position.
Etymology of COMPETITIVE INTELLIGENCE
The term "competitive intelligence" originated in the field of business and can be traced back to the mid-20th century. The word "competitive" comes from the Latin word "competere", which means "to strive together" or "to contend". It refers to the act of competing or trying to outperform others in a particular domain.
The word "intelligence" in this context does not refer to the concept of human intelligence but rather signifies the gathering of information or knowledge. It is derived from the Latin word "intelligere", which means "to understand" or "to comprehend".
When combined, "competitive intelligence" refers to the systematic collection and analysis of information about competitors and the competitive environment to gain a strategic advantage in business. The term gained prominence in the 1980s and has since become widely used in the business world.
