Use competitive intelligence to keep tabs on the competition
Manufacturers can no longer rely solely on providing top-quality, low-priced products delivered at the speed of light to differentiate themselves from their competition. And customized service has become a requirement just to stay in the manufacturing game.
Increased competitiveness in the market calls for adopting new approaches to maintain your edge. Case in point: competitive intelligence (CI).
Sometimes it’s what you know
CI is the process of legally and ethically gathering information on competitors to anticipate trends, compare practices and identify opportunities to gain an edge. It’s likely that your competitors already possess information on your company. So why not find out all you can about them? Using CI can help you gain valuable information about your competitors’:
- Product and service offerings,
- Financial performance,
- Market position,
- Growth or expansions as well as any closures or relocations,
- Mergers, acquisitions or strategic alliances, and
- Changes in business direction.
Using CI can also clue you in to other pertinent information, such as coverage in the press.
Two sleuthing strategies
Define your goals for using CI and appoint a staff member to manage the ongoing effort. Here are a couple of sleuthing strategies to get you started:
1. Get the facts in writing. Your competitors’ brochures, catalogs, press releases, annual plans and other collateral materials can provide you with a wealth of information on how your company stacks up in terms of products and services, earnings, customer service, and other policies and practices. Subscribing to trade and local business journals that cover your industry and competitors can also provide useful information.
Trade shows and other industry events where your competitors display their goods are perfect opportunities to gather additional information and even meet them face to face and learn more about their companies.
2. Stake out the Web. Start by reviewing your competitors’ Web sites and industry sites (newsgroups and associations) for information. In addition, seek out other potentially helpful sites, such as the CI Resource Index at ciseek.com. This resource features a search engine and an extensive list of resources.
You can get industry, market and company-specific intelligence for both public and private businesses at hoovers.com. On lexis.com, you can search for liens (including tax liens) on competitors’ property. You can also find financing sources and assets competitors have pledged as collateral.
In addition, credit-reporting agencies, such as Dun & Bradstreet, provide financial data, management and ownership information, and payment histories.
Use it to your advantage
You don’t have to be a spy to get the lowdown on your competitors. Most of the information you need is right at your fingertips. Using it to your advantage can keep you one step ahead at a time when having a competitive edge is a business necessity.
J.C. Wilkinson, CPA, CPIM
Manger, Manufacturing & Distribution Service Team Member
