Intelligence
The upside of successfully predicting a competitor's future plans are apparent; as are the consequences of making business decisions based on information that is faulty.
Competitive intelligence is performed under three main approaches in the intelligence framework:
Strategic Intelligence is concerned mainly with competitor analysis or gaining an understanding of a competitor's future goals, current strategy, assumptions held about itself and the industry, and capabilities - diagnostic components. Intelligence about the firm's major customers, suppliers and partners (in marketing or research and development alliances) is often also of strategic value.
Tactical Intelligence is generally operational and on a smaller-scale, not so centred on being predictive. Tactical issues include competitors' terms of sale, their price policies and the plans they have for changing the way in which they differentiate one or more of their products from yours. Middle-level marketing and sales managers number among some of the main uses of tactical intelligence. They want to know how to win the day, today.
Counter Intelligence is defending company secrets. Every firm has competitors as interested in knowing your plans as you are in knowing theirs, maybe even more so. Often this area of endeavour will involve security and information technology, but others are often overlooked, such as hiring and firing strategies, to contain competitor opportunities within the firm.
Competitive intelligence is the determination of solutions to these principle factors and determinants of ongoing competitive advantage:
What is the basis of competition; Where the firm competes; Who does the competitor compete against; How does the firm compete.
