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Examples Of Competitive Intelligence

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Chapter 10 Module: Planning and control techniques

Competitive Intelligence: Page 295

Page 295, under the heading Competitor Intelligence, 1st paragraph, 4th line onwards replace from ‘Let’s look…’ till ‘counteract this competitive attack
Let us look at an example of how one organization used competitive intelligence to detect potential threats. The acquisition of the PC division of IBM by Lenovo, a company based in People's Republic of China (PRC), involved a research by CFIUS, the US institute of Control of Foreign Investments to understand the consequences of potential Lenovo acquisition. One of the key intelligence topics was what would happen to IBM’s Research Triangle Park in North Carolina. The US Government was concerned that the centre might also be used to start espionage activities. What were the possibilities that the Lenovo staff may …show more content…

Framework for Competitor Analysis
One of the major models for competitive intelligence is the Porter’s model – ‘Framework for Competitor Analysis’. Diagram Reference: Strategy and the Business Landscape – Pankaj Ghemawat, 1999. Pearson

This model looks at competitor analysis from the perspective of competitor’s current business portfolio, current strategy and its current capabilities in terms of strengths and weaknesses. For an insight into the future, the company needs to understand the competitor’s mind-set in terms of competitor’s future goals in its various country markets and for various businesses. It is also essential to understand the competitor’s likely assumptions about itself and the industry.
Based on an understanding of the competitor’s current strategy and what drives the competitor, it is possible for a company to anticipate the competitor’s responses in the following four aspects:
• Does the current position of the competitor satisfy its needs?
• What moves or strategies will the competitor implement?
• Where is the competitor vulnerable?
• When will the retaliation be greatest by the

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