Today, leading companies in developed countries around the world actively use analytical models and methods for processing competitive intelligence data. In most cases, more than one analytical model is used for this purpose. Most often, these are SWOT analysis (strengths and weaknesses, opportunities, and threats) and competitor analysis, followed by benchmarking (best practices), competitor positioning, and industry analysis.
In addition, the following analytical methods are used by companies in the process of competitive intelligence: financial analysis and evaluation, customer segmentation, scenario analysis, patent analysis, technological forecasting, and the method of indicators and warnings.
In particular, various methods of analysis, mainly strategic marketing management, are used to assess competitive advantages. The main ones include:
· SWOT analysis;
· SPACE analysis;
· PEST analysis;
· analysis of competitors by Porter.
At the same time, some experts note the futility of expecting an effective result from the formal application of SWOT analysis in competitive intelligence. On the one hand, such a well-known competitive intelligence professional in the world, B. Gilad, considers SWOT analysis, in general, a fairly practical method, actively used in competitive early warning systems. On the other hand, B. Gilad states that "most examples of SWOT analysis are surreal rather than realistic".
Let's briefly consider the features of SWOT analysis. SWOT is an acronym for strengths, weaknesses, opportunities, and threats. The internal situation of the company is reflected mainly in S and W, and the external situation is reflected in O and T. SWOT analysis is a stage in the development of a marketing strategy.
The methodology of SWOT analysis involves, first, identifying the internal strengths and weaknesses of the company, as well as external opportunities and threats, and, second, establishing links between them.
The quality of SWOT analysis directly depends on objectivity and the use of versatile information. It cannot be entrusted to one person, as the information will be distorted by his subjective perception. When conducting a SWOT analysis, the points of view of all functional divisions of the company should be taken into account. In addition, all identified factors must be confirmed by objective facts and research results. But even for the most experienced industry experts, deriving actionable insights from structured and unstructured data requires time- and resource-intensive market assessment techniques and technologies. This is where consulting companies engaged in competitive intelligence come to the rescue, in particular the Sidcon consulting company, which has been working in the field of information and analytical services since 2002 for private and public organizations (in Ukraine and other countries).
At the same time, it should be understood that SWOT analysis is only a tool for structuring the available information; it does not give clear and clearly formulated recommendations or specific answers. It only helps to visualize the main reasons, as well as to estimate, in the first approximation, the mathematical expectation of certain events. The formulation of recommendations based on this information is the work of an analyst of the competitive intelligence service.
The simplicity of SWOT analysis is deceptive, its results strongly depend on the completeness and quality of the source information. SWOT analysis requires either experts with a very deep understanding of the current state and trends of the market or a very large amount of work on the collection and analysis of primary information to achieve this understanding. Errors made during the formation of the table (inclusion of unnecessary factors or loss of important ones, incorrect assessment of weighting coefficients, mutual influence) cannot be detected in the process of further analysis (except for completely obvious ones); as a result, they will lead to incorrect conclusions and erroneous strategic decisions. At the same time, with the help of a SWOT analysis, a company can develop a strategy for its market behavior.
In more detail about the main tools of competitive intelligence in the book - "Competitive intelligence in the management system for critical infrastructure facilities, corporations, and financial institutions". The book highlights the modern strategic guidelines for the development of competitive intelligence in a globalized world, considers competitive intelligence as an instrument for ensuring the security and management for critical infrastructure facilities, corporations, and financial institution, and also describes advanced information and analytical technologies and instruments for competitive intelligence.
In addition, the following analytical methods are used by companies in the process of competitive intelligence: financial analysis and evaluation, customer segmentation, scenario analysis, patent analysis, technological forecasting, and the method of indicators and warnings.
In particular, various methods of analysis, mainly strategic marketing management, are used to assess competitive advantages. The main ones include:
· SWOT analysis;
· SPACE analysis;
· PEST analysis;
· analysis of competitors by Porter.
At the same time, some experts note the futility of expecting an effective result from the formal application of SWOT analysis in competitive intelligence. On the one hand, such a well-known competitive intelligence professional in the world, B. Gilad, considers SWOT analysis, in general, a fairly practical method, actively used in competitive early warning systems. On the other hand, B. Gilad states that "most examples of SWOT analysis are surreal rather than realistic".
Let's briefly consider the features of SWOT analysis. SWOT is an acronym for strengths, weaknesses, opportunities, and threats. The internal situation of the company is reflected mainly in S and W, and the external situation is reflected in O and T. SWOT analysis is a stage in the development of a marketing strategy.
The methodology of SWOT analysis involves, first, identifying the internal strengths and weaknesses of the company, as well as external opportunities and threats, and, second, establishing links between them.
The quality of SWOT analysis directly depends on objectivity and the use of versatile information. It cannot be entrusted to one person, as the information will be distorted by his subjective perception. When conducting a SWOT analysis, the points of view of all functional divisions of the company should be taken into account. In addition, all identified factors must be confirmed by objective facts and research results. But even for the most experienced industry experts, deriving actionable insights from structured and unstructured data requires time- and resource-intensive market assessment techniques and technologies. This is where consulting companies engaged in competitive intelligence come to the rescue, in particular the Sidcon consulting company, which has been working in the field of information and analytical services since 2002 for private and public organizations (in Ukraine and other countries).
At the same time, it should be understood that SWOT analysis is only a tool for structuring the available information; it does not give clear and clearly formulated recommendations or specific answers. It only helps to visualize the main reasons, as well as to estimate, in the first approximation, the mathematical expectation of certain events. The formulation of recommendations based on this information is the work of an analyst of the competitive intelligence service.
The simplicity of SWOT analysis is deceptive, its results strongly depend on the completeness and quality of the source information. SWOT analysis requires either experts with a very deep understanding of the current state and trends of the market or a very large amount of work on the collection and analysis of primary information to achieve this understanding. Errors made during the formation of the table (inclusion of unnecessary factors or loss of important ones, incorrect assessment of weighting coefficients, mutual influence) cannot be detected in the process of further analysis (except for completely obvious ones); as a result, they will lead to incorrect conclusions and erroneous strategic decisions. At the same time, with the help of a SWOT analysis, a company can develop a strategy for its market behavior.
In more detail about the main tools of competitive intelligence in the book - "Competitive intelligence in the management system for critical infrastructure facilities, corporations, and financial institutions". The book highlights the modern strategic guidelines for the development of competitive intelligence in a globalized world, considers competitive intelligence as an instrument for ensuring the security and management for critical infrastructure facilities, corporations, and financial institution, and also describes advanced information and analytical technologies and instruments for competitive intelligence.