In a general sense, company managers today are not faced with a lack of information, but the opposite. Relevant, timely and critical information gets lost or delayed in the mass of other information. This information overload, when combined with a constant downward pressure on staffing levels and an increasingly short decision-making cycle, creates an environment where very few companies now have the time or the manpower to systematically hunt, sort, evaluate and disseminate important competitor information on an on-going basis.
So is Competitor Intelligence still important, or are we managing in this new environment with what we have – often only occasional media reports, contract news or other news alerts, financial results and industry rumour?
To answer that question, here are some scenarios to test the value that you might place on high grade Competitor Intelligence:
Click on any of the following areas to expand:
Large investment in new production line is threatened by brand new competitor plant
Your board of directors is considering a decision to invest in a new production line at an existing site to supply regional customers, but hear a rumour that a competitor is planning to set up a completely new, high productivity plant nearby, possibly to serve exactly the same market. What value would you place on knowing
- The nature, size and description of the intended plant
- A technical description of the product intended and scale of production
- The estimated total investment and any funding assistance.
- Employment requirement of the new plant and local skills base.
- Customer reaction and any particularly vulnerable key customers.
- Any indication of market strategy (i.e. price/quality advantage).
- The time frame for completion and for the plant to come on stream?
You are engaged in a price war with a competitor - who will blink first?
Your margins are being squeezed by a competitor, who is determined to take market share in your home market. What value would you place on knowing
- The estimated cost structure of the competitor, relative to your own (labour costs, approximate asset values, debt levels etc.)
- The strengths and weaknesses of the competitor, as seen by customers and suppliers.
- Confidential key person screening.
- Sales arguments, performance history and other “ammunition”.
Your niche market is suddenly threatened by a new low cost producer
You have been told of a new plant which is being built, close to the raw material source, which could immediately undermine your dominant position in a particular niche market. What value would you place on knowing
- Plant description, (size, technology, location, ownership, source of funding),
- Time expected for the plant to come on stream
- Projected initial output and total capacity
- Quality/grade of raw material and relationship with supplier.
- Customer reaction and any particularly vulnerable key customers.
- Any indication of market strategy (i.e. price/quality advantage).
The answer is probably that there is a distinct value to be placed on highly specific, very time and case sensitive material that can be obtained quickly and quietly on demand.
GMS provides this service through its strong links with data and research sources such as specialist intelligence and other service providers and major international business schools. Beyond conventional information sources such as annual reports, investment analysts’ summaries, the internet, major media outlets, business libraries etc, other sources include:
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Sophisticated data mining |
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Debt and credit registers, |
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Local authority planning registers, |
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Government grant awards, |
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Court orders & employment tribunals |
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Patent applications & awards |
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Local health & safety issues, applications to environmental departments, |
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Recruitment trends (big lay-offs or new recruitment, key staff etc), |
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Aerial or satellite photography |
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Human intelligence |
There is of course a limit to how much you can find out about your competitors without breaking the law(s) of possibly more than one country and breaching your own or a generally accepted code of ethics. GMS operates under its own strict guidelines, which are monitored by the Advisory Board.
Find out more by contacting us directly for an initial and confidential discussion.
