Valio Competitive Intelligence provides economic analysis and development projects for clients. Their economic analyses use Porter's Five Forces model to evaluate competitive rivalry, potential new entrants, supplier and customer power, and threats of substitution. They also monitor key performance indicators, use management information systems to continuously scan the market environment, and help clients redefine strategies when alternatives become more attractive.

1. Valio Competitive
Intelligence
Development and Economic Analysis
for Projects

2. Development and Economic Analysis for Projects
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Our Economic Analysis are based on:
• Market Intelligence using the Porter’s Five Forces Model
• Competitive Rivalry
• Potential of New Entrants Into the Industry
• Power of Suppliers
• Power of Costumers
• Threat of Substitute Products
Our Development for Projects are:
• Monitoring the results for KPI
• Management Information System (MIS)
• Redefining the Way When the Alternative Strategy Becomes
More Interesting

3. Market Intelligence using the Porter’s Five Forces Model
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We help our clients to develop
their business applying the
Porter’s Five Forces Model with a
special approach based on Market
Intelligence tools.
This analysis is very import to
build an efficient winning strategy
in any business

4. Competitive Rivalry
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For most industries the intensity of competitive rivalry is the major
determinant of the competitiveness. We valuate the following
potential factors:
• Number and Size of Competitors;
• Competition between Companies;
• Firm Concentration Ratio;
• Quality Differences (actual and the perceived by the clients);
• Cost Analysis;
• Costumer Loyalty;
• Degree of Governance and Transparency;
• Powerful Competitive Strategy;
• Sustainable Competitive Advantage through Innovation

5. Potential of New Entrants Into the Industry
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Profitable markets that yield high returns will attract new firms. This
results in many new entrants, which eventually will decrease
profitability for all firms in the industry. We measure the potential of
these threats and we help the companies to make the most efficient
strategy to mitigate the risks through:
• Development of barriers to entry (patents, designation of origin,
rights);
• Time and Cost to Entry;
• Brand Equity and Product Differentiation (Specialties);
• Cost Competitiveness;
• Government Policy;
• Economies of Scale;
• Specialist Knowledge and Technology Protection

6. Power of Suppliers
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Suppliers of raw materials, components, labor, and services (such as
expertise) to the firm can be a source of power over the firm when
there are few substitutes. We help the clients to find alternatives of
inputs to reduce suppliers bargaining power. We evaluate:
• Ability to Substitute the Inputs and its Costs of Change;
• Potential Development of New Suppliers;
• Availability of Vertical Integration of the Supply Chain;
• Potential threat of supplier competition (Forward Vertical
Integration);
• Size and Number of Players.

7. Power of Costumers
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The buyer power is high if the buyer has many alternatives. In case of
commodities markets, the buyer power tends to infinity. Then the
best strategy for these kind of industries is to reduce the costs. In any
way the important points to consider in the strategy are:
• Price Sensitivity of the Market;
• Buyers ability to substitute the product;
• Size and Number of Players;
• Bargaining leverage;
• Asymmetry of market information;
• Ability to develop a win-win long term contract and/or a loyalty
program

8. Threat of Substitute Products
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The threat of a substitute is the level of risk that a company faces
from replacement by its substitutes. We help our clients to measure:
• Relative Price Performance of Substitutes;
• Buyer Propensity to Substitute;
• Quality Depreciation;
• Cost of Change;
• Potential Emergence of a New Competitive Product

9. Monitoring the results for KPI
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Key Performance Indicator (KPI) is a type of performance
measurement. KPIs evaluate the success of an organization or of a
particular activity in which it engages. We help our clients to define
and how to monitor the results through the following tools:
• SMART Criteria;
• Business Intelligence;
• Dashboarding.
We strongly recommend to our clients to use the KPIs as the core of
the Balanced Scorecard in the management framework.
SMART Criteria
S: Is your objective Specific?
M: Can you Measure progress towards that goal?
A: Is the goal realistically Attainable?
R: How Relevant is the goal to your organization?
T: What is the Time-frame for achieving this goal?

10. Management Information System (MIS)
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It’s based on the continuous monitoring about the Market
Environment known as “Environmental Scanning” and it gives
assistance for the decision makers do develop the strategies, policies,
plans and to make programs and budgets through dealing with the
ongoing information on trends. We implement this with the tools:
• Organized Data Collection;
• Market Simulators;
• A Broad Perspective;
• Online Databases and Dashboards;
• Planning and Control;
• OLAP cube with fully customized assumptions and constraints.

11. Redefining the Way When the Alternative Strategy
Becomes More Interesting
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We develop with our clients an adaptive system that can identify
early on when things are not working. This brings flexibility to the
strategy, allowing it to be altered in relation to the continuous
development of the situation. We use some tools as following:
• Scenario Planning;
• Business Stress Test Simulator;
• Lessons Management System.

12. Showcase Company: Valio Competitive Intelligence International
Email: andre@valioci.com
Website: www.valioci.com
Skype: valio-ntb
Call:
(UK): +44 20 3289 4332 (US): +1 (202) 657-6945
(BR): +55 11 3280 4332 (MX): +52 55 8421 6945
(CO): +57 316 820 4580 (CL): +56 (2) 2405 4332
Contacts
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