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About Us > Help & Support > FAQs > Question 2: Compiling Competitor Profiles

Marketing & Competitive Intelligence FAQ
Compiling Competitor Profiles


I've been asked to perform an evaluation on one of our major competitors and have never done this before. I've gathered a ton of information and now need some guidance as to how to put it all together. Would you have an example of a format I could use for a competitor evaluation?

From your question, I am not sure that you are following the best approach.

There are two ways of doing a competitor evaluation.

  1. A shotgun approach - where you go and collect everything available including the name of the chairman's wife and children and which schools they go to. This will give you a ton of information - most of which will be irrelevant. (Yes - believe it or not, we have been asked to find family information such as this. Apart from the fact that obtaining it and passing it on would generally break European data protection regulations, such information is highly unlikely to provide intelligence that would help business decision making - which is the purpose of collecting competitive intelligence. It is valid to collect information on key management so that behavioural profiles can be created - but this does not usually need to include detailed family information such as schools, spouse details, etc.).

  2. A targeted approach. You need to formulate what is often called a KIT - or Key Intelligence topic. Identify what you need to know about a particular competitor, break it down into a series of key questions, and go and find that information only. As new needs come up, you will formulate new KITs. Over time you will develop a very targeted and custom based knowledge on the individual competitor, its approach, behaviour patterns and strategy. This can then be used to feed back into your own strategies to formulate counter moves.

The second approach makes much more efficient usage of time and will be more useful for management as it gives them what they need without the requirement to sift through that ton of data. Of course the ton of data is important as it gives background information, and can help in spotting new trends and anomalies that may signify a change in strategy for the competitor or confirm other information. However when asked to do an evaluation the first question should be what is the purpose. (If an acquisition then the information will be different to looking at new product ideas or new market moves).

However as you already have lots of data, you should not just throw it away as what may seem irrelevant now may be important later. One approach is to construct a detailed profile of the competitor. A form I use as a guideline breaks down the major types of information that you are likely to collect or need on your competitors as follows:

  • Basic information such as location and core business.
  • Background information
  • Financial assessment
  • Marketing & sales capabilities
  • Operational details
  • Miscellaneous aspects
  • Key news stories / recent events
  • Strength & weakness assessment
  • Strategy evaluation
  • Threat evaluation & outlook

I use this as an aide-memoir for everything on a particular competitor. It is essentially a brief summary of all the essentials - so that you have everything in one place. Its purpose is to save you from having to look up the key points and search through several documents – whether held in a hard-copy format or computerised.

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Quick Tip: Questions

Quick Tip

A key competitive intelligence skill is the ability to distinguish what you do know from what you don't know. The effort is then to find out sources for the unknown information - as the great English writer, Dr Samuel Johnson said:

Knowledge is of two kinds. We know a subject ourselves, or we know where we can find information upon it.

Unfortunately even with the knowledge there can be problems. Lewis Branscomb - the US physicist and Harvard management professor once said:

People rarely distinguish among data, information, knowledge, and wisdom. But they are as different from each other and as interlocking as starch molecules, flour, bread, and the flavorful memory of a superb morning croissant.

The aim of competitive & marketing intelligence is to turn data into something that can lead to competitive advantage in the same way that your morning croissant or loaf of bread depends on flour and water interacting to make something that is more than just a mixture of the raw ingredients.

 

Books - Competitors (Fahey)

Recommended Book

Competitive-Intelligence-in-the-UK
Competitive Intelligence: Gathering, Analysing and Putting it to Work
Christopher Murphy
Buy UK £ or US$

Read our review of this book

If you are interested in learning about competitive intelligence with a UK / European focus then this book is for you. Most books on CI are written by US authors and take a US perspective. They fail to note the significant differences between what is available in the US and Europe and the UK. For example, in the US the US Freedom of Information Act is key for finding a lot of information. Such legislation has only recently been enacted in the UK and the type of information available is more limited. In contrast, financial information is much easier to obtain in the UK than the US. Murphy's book redresses the balance and fills a gap in guiding the CI newcomer on how to gather CI in Europe.

One of the best sections is a detailed examination of the sources and types of financial CI information that can be obtained within the UK. In fact I think this is unique. Of all the CI books I've read - none give anything like the same depth on this crucial topic.

For a thorough review of this book check out FreePint's book review.

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For more recommendations visit our book selection.

 

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Finding Competitive Intelligence using Online Sources

AWARE consultants are experts at discovering competitor information online and have developed a market-leading course on Finding Competitive Intelligence using Online Sources. This course has been given as an in-house course to numerous companies across industries (IT, publishing, telecoms, chemicals....) and countries, as well as publicly at SCIP annual and European conferences, the London International Online Information Conferences and other similar events.

The workshop has received high praise for its unique approach to finding competitive intelligence on the Internet. The workshop - available as a half-day or full day in-house training course - teaches attendees how to find actionable competitive intelligence rather than just present a list of sources that quickly date. Like all AWARE's in-house training, the course can be customised to focus on industry or competitive area.

For more information on this workshop and how it can help you become a more effective Internet researcher check out our Competitive Intelligence Training and ask us about our courses on finding CI information.

 

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Last page / site update: Wednesday, June 9, 2010

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