Competitive Intelligence Services – Benefits to a Startup
With the world having become a single marketplace, one common trend that is seen in the business scenario is competition. With internet having made its presence, it has become easier for anyone sitting anywhere to enter the global marketplace and compete.
In this situation of cut throat competition if a start-up business decides to focus on its generating business immediately after starting the same would mean disaster for it. Hence, ideally, start-ups should engage in deploying competitive intelligence services before its entry into the marketplace, as the failure in an identification of the existing competitive situation might result in failure of the business.
Why should startups engage in competitive intelligence services?
How Competitive Intelligence Helps in Devising Better Marketing Strategy primarily involve tapping of market details to collect, analyze and deduce inference from the same to understand the market dynamics. This helps a firm to understand better about the competitive situation prevailing in the market such as the latest schemes introduced by the competitor and the steps that are needed to take to promote its products, whether the brand image of the competitor’s product has a better standing than yours in the market.
Competitive intelligence, in short, aids a firm in undertaking detailed analysis, make intelligent interpretations of the analysis done and carry out the same using the proper techniques and tactics to win the competition.
Before making a foray into the market, a start-up needs to know what competitive edge it has over its competitors including the alternatives it can offer. Competitive intelligence services provide a clear-cut idea about what the start-up can offer to its consumer along with detailed understanding of the target market and the reason why consumers would buy the product of a start-up.
Competitive Intelligence Services – An Ethical Practice
Market research practices carried out over the years show that competitive intelligence is an act done in an ethical and systematic way to gather information and analyze data about consumers, competitors and the market in the best possible way. There is a stark difference between competitive intelligence services as compared to corporate or industrial espionage. While competitive intelligence conducted is a legal way, the latter involves theft of intellectual property and needs avoidance at all costs.
It is common known fact that most start-ups are cash starved; hence information that is openly and freely available comes as a boon for them. By checking on free competitive intelligence data available from varied sources, a start-up can gather a lot of information about the competitor such as the launch date of the competitor’s products, the PR strategy adopted by the competitor including the process of communication that takes place between the consumer and the competitor. The best part is, it is possible to get all this information by posing as a consumer and it is easily possible to find the warning signal and correct the same before it is too late.
Implementation of competitive intelligence service strategy in a startup
When implementing competitive intelligence strategy, a start-up needs to stay focused and target oriented to make the company succeed all odds. For this, a start-up needs to rely on sources that are reliable such as the sales staff and the consumer service representatives as they tend to stay in constant touch with consumers of the rival companies.
Competitive intelligence service is not restricted in making a start-up strong to face competition but in analyzing its own strength and weakness to make its presence felt in the market.
Also, check out this article to know How important is market research for entrepreneurs?