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Competitive intelligence-analysis-tools-for-economic-development

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What is competitive intelligence?

What is competitive intelligence?
Why analyze?
Top 5 analysis tools
Tips to remember

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    Competitive intelligence-analysis-tools-for-economic-development Competitive intelligence-analysis-tools-for-economic-development Presentation Transcript

    • Competitive Intelligence Analysis Tools For Economic Development June 2009 www.intelegia.com www.twitter.com/citweetz
    • Introduction
      • What is competitive intelligence?
      • Why analyze?
      • Top 5 analysis tools
      • Tips to remember
    • What is Competitive Intelligence?
      • As defined by Wikipedia (June 2009):
      Competitive Intelligence is the action of gathering, analyzing, and applying information about products, domain constituents, customers, and competitors for the short term and long term planning needs of an organization. Competitive Intelligence (CI) is both a process and a product. The process of collecting, storing and analyzing information about the competitive arena results in the actionable output of intelligence ascertained by the needs prescribed by an organization.
    • Why Analyze?
      • Clients (or internal users) do not have the time to wade through raw intelligence
      • Capture insights from public information sources to gain a competitive advantage
      • Present possible answers to established Key Intelligence Topics (KITs)
      • Supply a value added aspect to a solid research process
    • Top 5 Analysis Tools
      • SWOT Analysis
      • Competitor Profile
      • STEEP Analysis
      • Porter’s Five Forces
      • SPACE Matrix
      Call Isabelle Poirier, Investment Strategist, at +1 (514) 276-1700 Ext. 104 to inquire about your customized seminar solution to learn about these tools plus five more analysis frameworks for economic development.
    • Analysis Tool #1: SWOT Analysis
      • Description:
      • An established framework that aids in taking inventory of firm’s overall Strengths and Weaknesses; and industry’s Opportunities and Threats . By identifying each element, decision makers can utilize the resources necessary to overcome the challenges that are present in firm and industry efficiently.
      • Objective:
      • To discover strategic options to reach objectives by assessing a firm’s position within its industry given its internal and external environments.
      • Information Needed:
      • When collecting the raw data for the SWOT analysis, it is important to be free from bias. It is essential that each element is judged fairly by experience personnel or by a group. Once this aspect is settled, the information must originate internally for the strengths and weaknesses. Information can come from industry reports, articles and experts’ insights. With all the gathering information, decision makers can complete the first part of the exercise by answering the following questions located in each quadrant.
      • I) What is the firm doing well? (S)
      • II) What can the firm improve upon? (W)
      • III) What are the opportunities for the firm to grow? (O)
      • IV) What are the threats or changes in the external environments that the firm should avoid? (T)
      Bombardier Transportation Company Profile on LinkedIn
    • Analysis Tool #2: Competitor Profile
      • Description:
      • An overview of competitors’ past and present activities in the industry. The profile entails examining management, products and or services and financial status of competitors .
      • Objective:
      • To provide decision makers with detailed information that can influence plans to overcome competitors’ strengths and exploit weaknesses.
      • Information Needed:
      • The initial step should entail gathering all available information regarding competitors. Dated information should not be discarded however current details are preferred . Once the information is collected, the second task of profiling can begin. The information must be categorized under the following sub-profile groups.
      • I) Information to help senior management prepare for a meeting with clients, potential partners, etc. (ie, news, profiles of decision makers, historical data)
      • II) Information to analyse the opportunity to acquire a company (ie, financial data, list of customers, strength and weaknesses assessment)
      • III) Information to build awareness internally about a competitor (ie, pricing, bidding data, description of service)
      • IV) Information to consider an opportunity for partnership (ie, past and existing partnerships, management style, corporate objectives)
      Call Isabelle Poirier, Investment Strategist, at +1 (514) 276-1700 Ext. 104 to inquire about your customized seminar solution to learn about this tool plus more analysis frameworks for economic development.
    • Analysis Tool #3: STEEP Analysis
      • Description:
      • An analysis framework that examines the macroeconomic environment that a firm competes in based on five factors socio-cultural, technological, economic, environmental, political
      • Objective:
      • To prepare firms to deal with external factors that could affect business initiatives at the present time or the future. When there are favorable conditions in the environment, firms can use their expertise to benefit from the changes to become more competitive.
      • Information Needed:
      • Socio-Cultural:
      • Population growth rate and age profile
      • Population health, education and social mobility, and attitudes to these
      • Population employment patterns, job market freedom and attitudes to work
      • Press attitudes, public opinion, social attitudes and social taboos
      • Lifestyle choices and attitudes to these
      • Socio-Cultural changes
      • Technological Environment:
      • Impact of emerging technologies
      • Impact of Internet, reduction in communications costs and increased remote working
      • Research & Development activity
      • Impact of technology transfer
      • Economic Current and project economic growth, inflation and interest rates
      • Unemployment and labor supply
      • Stage of business cycle
      • Labor costs
      • Levels of disposable income and income distribution
      • Impact of globalization
      • Likely impact of technological or other change on the economy
      • Likely changes in the economic environment
      • Environmental
      • Air and water quality
      • Sources of energy
      • Pollution levels
      • Raw Materials
      • Level of environmental regulation
      • Political
      • Government type and stability
      • Freedom of press, rule of law and levels of bureaucracy and corruption
      • Regulation and de-regulation trends
      • Social and employment legislation
      • Tax policy, and trade and tariff controls
      • Environmental and consumer-protection legislation
      • Likely changes in the political environment
    • Analysis Tool #4: Porter’s Five Forces Model
      • Description: Created by Harvard Business School professor, Michael Porter, the five forces analysis framework attempts to assess the level of competition within an industry . The process is based on examining the influences on a sector on the basis of:
      • 1. Existing companies, 2. Potential new companies 3. Substitutes for products offered 4. Suppliers 5. Customers
      • By understanding the forces placed on the sector, decision makers may be in the best position to realize the structure and dynamics of a sector.
      • Objective:
      • To provide insights into competitive environments on a national and global scale. Results from the analysis exercise can be used to make the right strategic decision to become a leader within an industry.
      • Information Needed:
      • Gathering information for this framework is rather straightforward. Details which corresponds to each force should be recent and reflect the present day realties in the industry. The information should answer the following questions:
      Existing companies (Rivalry) a) How many firms are active in the industry? b) What are the fixed costs assigned to operating in the industry? c) How do products / services differ from other firms in the industry? Potential new companies (Barriers To Entry) a) Are patented needed to compete in the industry? b) What are the costs associated with entering in the industry? c) Is there a sense of brand loyalty among buyers / customers? Substitutes for products offered a) How easy can a product or service be substituted? b) Can the product or service be offered at cheaper price? c) What is buyers’ willingness to accept substitutes? Suppliers a) How many suppliers exist for a given product in the industry? b) What are the costs associated in switching suppliers? c) Do suppliers produce specific materials for an unique product? Customers (Bargaining power) a) How many customers exist in the industry? b) What is role of quality when obtaining products or services c) Is it easy for buyers to switch their supplier?
    • Analysis Tool #4: Porter’s Five Forces Model Buyers Rivalry Among Competitors Potential Entrants Suppliers Substitutes Threats of New Entrants Bargaining Power Bargaining Power Threats of Substitutes
    • Analysis Tool #5: SPACE Matrix
      • Description: The Strategic Position and Action Evaluation (SPACE) matrix is a valuable method for analyzing the competitive position of an organization . It makes use of two internal dimensions ( financial strength and competitive advantage ) and two external dimensions ( industry strength and environmental stability ), to determine the organization’s strategic posture in the industry. The firm’s strategic posture is then classified broadly as: aggressive, competitive, conservative or defensive. 
      • Objective: The key objective of utilizing the SPACE matrix is to identify the posture of a firm within an industry in terms of strategic initiatives.
      • Information Needed:
      • In order to apply the SPACE matrix, researchers are called upon to collect qualitative and quantitative information in the form of aspects that can describe environmental stability (ES), industry strength (IS), competitive advantage (CA) and financial strength (FS)
      • Return On Investment
      • Leverage
      • Liquidity
      • Capital Required / Available
      • Ease of Exit From The Market
      • Risk Involved In Business
      Financial Strength (FS)
      • Market Share
      • Product Quality
      • Product Life Cycles
      • Product Replacement Cycles
      • Customer Loyalty
      • Competition’s Capacity Utilization
      • Technological Know How
      • Vertical Integration
      Competitive Advantage (CA)
      • Growth and Profit Potential
      • Financial Stability
      • Technological Know-How
      • Resource Utilization
      • Capital Intensity
      • Ease of Entry Into The Market
      • Productivity or Capacity Utilization
      Industry Strength (IS)
      • Technological Change
      • Rate of Inflation
      • Demand Variability
      • Price Range of Competing Products
      • Barriers to Entry into The Market
      • Competitive pressure and Price Elasticity of Demand
      Environmental Stability (ES)
    • Analysis Tool #5: SPACE Matrix
    • Tips To Remember
      • Always keep in mind the analysis tool(s) that will be applied while searching for relevant and timely information
      • Take the time to perfect your analysis skills by attending seminars and working on case studies
      • The more strategic insights presented to management, the more value the competitive intelligence function will have.
      • For more tips, read the Tools For Thought blog at http://intelegia.com/mediacenter/tools_for_thought/
    • About Intelegia Intelegia, a subsidiary of E&B DATA, is a company that strives to assist individuals in understanding the changes in the business environment through internet intelligence. Via training, consulting and publications, Intelegia aims to provide the best approaches and tools to obtain the best information and utilize decision-making frameworks. Call Isabelle Poirier, Investment Strategist, at +1 (514) 276-1700 Ext. 104 to inquire about your customized seminar solution to learn about these tools plus five more analysis frameworks for economic development.