Example of Competitive Intelligence: about a new competitor wanting to take a significant share
The following article is a competitive intelligence example about a new competitor wanting to take a significant share. It is another example of how competitive intelligence can help you with the business problems you face daily or crop up from time to time. Ultimately, it should be better to know something than not know anything about a situation you face. So you can make better decisions based on insight, not guesswork and sometimes blind panic. Competitive intelligence allows you to think clearly and be in the zone. This case study is about insights into new market entrant analysis.
What’s the situation?
A manufacturer asked us to help them understand a new competitor. It was an unknown competitor who had come out of nowhere. Now, as Competitive intelligence consultants, we can tell you there will have been signals months before a new competitor came out of nowhere. But that’s a different story for another day.
Their sales channels had remained unchanged for twenty years. Selling to the market via distributors in the UK and agents overseas.
The company had profiles of the individuals involved in the business and basic corporate information. All were collected from publically available information. But it was clear they had just scratched the surface. It was a private company which had arrived with an impact from another industry sector, so they were uncertain about what they faced. They wanted to know what they were facing and determine if they should be worried about them. And to understand what areas of their business would be affected. And what, if anything, they could and should do to counter or exploit their new foe’s strengths and weaknesses.
What could be done?
We used several interviews and profiling processes. To increase the chances of predicting their next moves, the individuals involved were researched to determine their character and background. The business, its offering, operations, and sales were investigated. Using more secondary sources and interviews with experts from both industries, analysts, former employees, and suppliers, strategic plans, funding, and weaknesses were isolated.
The customer was rightly concerned, as their strategy and financials told us their expansion strategy was to create an additional market channel without involving existing channels. They were marketing directly to consumers with real estate stores and online. Read more: What is Competitive Intelligence in Pharma?
What was the result?
The new competitor and their new sales channel took the industry by storm and became a leading market player. However, using competitive intelligence, our example client was able to use insight to strengthen their position, creating their rival direct-to-consumer model using their industry track record to build customer loyalty. They also ensured their existing distributors were signed up exclusively to them with better bulk discounts, all before the new competitor could enter the market. Read more: Embrace the power of foresight with scenario planning
Insights into New Market Entrant Analysis
Understanding how to analyse a new market entrant is crucial for established businesses in the competitive intelligence landscape. This analysis helps gauge the potential impact of new competitors and formulate strategies to maintain a competitive edge.
Essential Aspects of New Market Entrant Analysis:
- Market Position Assessment: Evaluating the new entrant’s market positioning and potential disruption.
- Strategic Intent Analysis: Understanding the entrant’s long-term strategic goals and how they align with market dynamics.
- Response Strategies: Develop effective strategies to respond to the new market challenges posed by the entrant.
And that’s the potential power of competitive intelligence.
New Market Entrant Analysis: about a new competitor wanting to take a significant share
This article was a competitive intelligence example about a new competitor wanting to take a significant share. It’s part of a series of examples that Octopus Competitive Intelligence is building to show how competitive intelligence can help you with daily business problems or crop up from time to time. Competitive intelligence allows you to think clearly and be in the zone. Read more: Conducting a Competitor Analysis: Uncovering Opportunities and Strengths.
Art by: @arshadpooloo
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