Competitive Intelligence: A Strategic Imperative

When your customers choose your firm, are they making the right choice? This question should not be offensive. As the owner of a small business, you should know the answer to this simple question, and your answer should be based on fact rather than bravado.

The design of an appropriate competitive strategy, as discussed regularly in this publication, requires that you know your competitors. For this, you need a competitive intelligence program. The cost does not have to be material and the time required can be modest. Most sources of data are free and readily available.

The first step to building your competitive intelligence is to find out basic information about your competitors:

• Who are they?
• Where are they located?
• What do they sell?
• How do they obtain customers?
• What types of customers do they attract?
• How many customers do they have?
• How loyal are each competitor's customers, and why?

Where can you find this type of information? Ask your salespersons. Then ask your current and prospective customers. Customers who buy or have bought from your competitors should offer fascinating insight. All will be flattered by your interest in and respect for what they say.

Once you have the list, fill in the details. Again, your salespersons and current and prospective customers should be a ready resource. Then, if feasible, order their products and analyze them objectively. At the very least, obtain and analyze the promotional materials. Or, better yet, have others assess the materials and/or products for you.

Next, find out which competitors have a website. Visit them and print out each page. If any are public, there will be a wealth of data available. Call the company, ask for their investor relations department and order the reports and press releases. Tell them you are a prospective investor - you are. Or go to www.sec.gov and you will find all of their filings.

Then search the Internet. Act like a customer and see what you find.

What pertinent data are available? When customers want to find out whom they should buy from, what do they find?

Finally, go a little further. Investigate the financial strength of private companies by ordering a Dun & Bradstreet report. Learn more by having an attorney search for legal filings, lawsuits, etc. on each. An hour on each competitor should be sufficient. You'll be amazed at what you will find. Separately, industry trade associations may have useful data as well.

When you've put this information together, you will feel empowered. More important, you WILL be empowered - with knowledge that will enable you to improve your strategies, products, methods and materials. Share it with your employees. Talk about it. Everyone likes to be different, to be "special." Branding is about becoming different and special, in ways that matter to customers and prospects, so you now have the basis for developing your brand, offering something unique and, best of all, becoming more successful.