A paradox is currently surfacing on the business landscape: Companies that have abundant resources are still falling short of success in today’s competitive world. In such scenarios, one can only question what exactly is going “wrong.”  Companies with appropriate and abundant resources, plus smart management, usually make their mark. With the exceeding number of competitors in the market, it is not shocking to see large companies liquidate early in their business life cycle. In order to survive in the current competitive world, it is crucial to profile the competition so that you know what they are doing, why they are doing it, how they are doing it, and when they are doing it. Companies today spend a great deal of time and resources on Competitive Intelligence.

Competitive Intelligence is the process of regularly monitoring your competition, within a specific market place, to ensure that they do not steal your market share. It consists of having the knowledge of what they plan to do, along with the strategies they will employ, even before they bring them to light. It involves careful planning in the selection of the business strategies that they will use to counteract the competition. A great deal of research is devoted to gathering adequate data that recognizes market trends, and then, integrates that knowledge with the company’s information database to formulate business decisions that would insure an increase in the company’s market share.

Benefits of Competitive Intelligence:

Competitive Intelligence has a strong strategic importance as it transforms competitor information into relevant strategic knowledge about a competitor’s performance. When one has the “know-how” of the capabilities and intentions of one’s competitors, it becomes easier to position one’s strategies accordingly. The fundamental advantages of using Competitive Intelligence are that it helps detect competitive threats, eliminates unexpected actions from competitors, helps uncover new opportunities, and enhances competitive advantage by recognizing the shortcomings of one’s competitors.

Who should use Competitive Intelligence?

Never before in history has competition been so tough. The market presents abundant opportunities along with unwanted threats. Faced with this challenge, business owners—regardless of the nature of the business—are engaging in the practice of Competitive Intelligence; and it is, therefore, gaining enormous importance.  After all, your profits depend on several varied aspects—the differentiation of your products, the marketing strategies your company applies, the pricing policies you incorporate, and the level of technology you use, etc. Consequently, you would only be able to succeed in these areas if you knew about the market, your competitors’ offerings, and the strategies they employed. True pleasure exists when you recognize that you are excelling in the industry because you know and understand your competitors, and because you have risen above the competing firms.

Incorporating Competitive Intelligence:

Competitive Intelligence is not about stalking competitors… It is about researching your competitors in an ethical way.  It is keeping a close eye on what your competitors are up to so that you have information that helps accomplish strategic planning that will enhance profitability. One of the major mistakes that entrepreneurs make is to underestimate the number of competitors they actually have. It is very important to take note of the existing, as well as potential competitors, and then, conduct extensive research before developing your master marketing plan.

Tools and Techniques of Competitive Intelligence:

One of the most successful, basic strategies of competition is the way a company markets itself. Knowing the marketing strategies of your competitors is essential in developing your own marketing strategies. How exactly do you do that? Start with the basics… Check the latest advertising campaigns and request their brochures or other marketing material; pay attention to their pricing strategies and any sales or discounts they are offering; pay a visit, as a mystery shopper, to see how they deal with their clients; and, check their online sites to know how much traffic they are driving to their site. Another way of conducting Competitive Intelligence—that is gaining a lot of interest—is through search engines. Major search engines can provide in-depth market knowledge about your competitors. Hiring Competitive Intelligence Consultants, who employ a variety of CI software, is also a viable option. If your competitors are publicly traded, you might also want to check them out on the SEC (Security Exchange Commission) to get detailed financial information.

Mistakes to Avoid:

Although Competitive Intelligence provides companies with vast advantages, it can present setbacks. In order to avoid timely setbacks, conduct your intelligence by keeping the following points in mind.  The first point has to do with the importance of gathering accurate and complete information. It is very common for companies to draw conclusions based on information that is simply incorrect or insufficient. This practice leads to misleading and incompetent conclusions and/or results. Another mistake that must be avoided is under staffing, CI demands extensive research. One research person may or may not be sufficient—the extent of the research depends on the size of the market and the number of competitors. Similarly, lacking adequate infrastructure that supports the gathered information can create problems. Information must reach its desired destination for it to become valuable, or it ends up as stale information.

Collecting data with clearly marked objectives—knowing what information to gather and for what purpose–is critical in the success of Competitive Intelligence because it saves time and resources. On the whole, Competitive Intelligence, if conducted professionally—while avoiding mistakes—creates a strong impact on tactical decision-making, and therefore, on improving Return on Investment.

While the proverbial “they” refers to the act of negotiating as an art, many others claim it to be a skill. In the light of actuarial studies of marketing, it has now become a science. However, the big question is: What is it that really helps when evaluating your offerings in the market as accurate, yet rightful. That is a highly subjective clause to debate. So, let’s see what “good table talk” can achieve, regardless of the offerings in the market environment.

When negotiating, using an astute combination of skills is far more important than negotiating aggressively. Negotiating is a technique whereby we tend to ensure a consistent flow of profits rather than one quick buck. As an entrepreneur, you must understand that (more…)

“Brand Your Efforts!” We’ve seen that call to action in every strategic action plan, so it must play a significant role in the optimization of your business product or services.  “Branding” refers to the process of separating one’s company product or services from another firm’s based on its specific identifying marks, symbols, or characteristics.

Brand Association refers to the degree to which a particular brand is associated with the general product category. Often a consumer will ask for a product by the specific brand name rather than the general name—for example, a person wanting facial tissue may ask for Kleenex.  When this happens, the consumer is making a brand association.  Brand association is a powerful draw for consumers since it offers them familiarity with the product or service!

The only way to continually grow your demand for your products/services is to differentiate yourself in a novel way. (more…)

Imagine this… Years ago, Warren Buffet wanted to work for someone for free, but the individual declined his offer! Sounds a bit illusive doesn’t it? But it’s a fact. In 1952, Warren Buffet wanted to work gratis for the GEICO Insurance Company. Surprisingly, Buffet was met with a refusal from Benjamin Graham. Benjamin Graham was an American economist and professional investor and is considered the first proponent of value investing. (more…)

As an entrepreneur, you may be feeling quite confident that you are the captain of your ship or the pilot of a business enterprise whose mission it is to succeed. As we all know, success in business is not an easy mission to achieve.  Ask any CEO, Warren Buffet, Bill Gates, Michael Dell, or Steve Jobs and they will tell you that one of the key factors in achieving business sales success with products and/or services is the ability to present ideas and concepts in a way that induces, influences, or convinces people to purchase.

Keen business presentation skills are always the order of the day — whether you are reporting to your stakeholders, bidding for contractual work, motivating your sales team, presenting ideas for venture capital, or merely convincing family members. (more…)

Getting the greatest possible return on your investment, starts with good financial records.  Simply put, any small business that fails to keep complete and accurate financial records places its long-term success and survival in jeopardy!

Take note of the following three (3) reasons why you should maintain complete and accurate financial records – it’s critical for your business success: (more…)

Staying on track with business and personal obligations can become a struggle. At times, you may even be tempted to, as the proverbial saying goes, “put things off” until tomorrow or make excuses for your inertia.

I would like to share with you a segment of an article entitled, “Good-Bye, Excuses,” written by Dr. Wayne Dyer. You probably recognize the name since Dr. Dyer is an internationally renowned author and speaker in the field of self-development.  In this segment, he talks about the self-defeating practice of making excuses; and then, suggests a strategy to avoid repeating this practice.

“Our excuses,” begins Dr. Dyer, “tell us that it’s okay if we fail to achieve what we set out to do today. We’ll do it tomorrow…maybe. Our excuses tell us its okay to stay with what’s safe. Trying something different could be difficult and risky.  Soon, we start to accept our excuses as truths. Left unchecked, these excuses will prevent us from ever reaching our goals.  A good strategy to combat this is to have a conversation with yourself about what you are willing to do to bring this about.  Next, write out a contract with yourself summarizing what you’ve agreed to do and the schedule on which you’ve agreed to do it.  Review this contract every day.”

I thought that Dr. Dyer’s “words of wisdom” were noteworthy. Perhaps they may help you if you are finding it difficult to “stay on track.”  Remember that your success in any endeavor will hinge upon your ability to deal effectively and in a timely manner – no matter which issue or challenge you encounter, no matter which objective you attempt to achieve.  You must remain persistent when carrying out the necessary steps and activities that will ultimately help you reach your final destination.

Staying on track and maintaining perseverance are daunting tasks. They are, however, possible and achievable if you make them your priorities!

What technique do you use for staying on track?

Charles Foster, PhD., MBA, is the director of The Chestnut Hill Institute in Boston (a research and consulting firm that focuses on the psychology of business success) and is the author of What Do I Do Now: Dr. Foster’s 30 Laws of Great Decision Making.  Dr. Foster spent 10 years studying decision makers.  He identified 35 people who generally made good decisions, and 35 people who frequently made bad decisions.  He then observed them over time as they made big decisions.  His research led him to two conclusions…

• Good decisions come from disciplined thinking. He advises that if you follow some basic rules of decision-making, most of your plans will work out.  If you think haphazardly during your decision-making process, your plans will be “hit or miss.”
• Good decisions are habit-forming. Each time that you make the right decision, you gain more self-confidence, and this in turn, encourages you to continue making good decisions.

According to Dr. Foster, two of the most crucial rules for making great decisions are: (more…)

The key elements for becoming your customer’s/client’s Go-to-Guy are based on traditional values: superior quality of product, high caliber of customer service, and competitive pricing. However, in addition to these traditional values, it is also necessary to stretch yourself beyond them and to establish yourself as an indispensable resource.  This means that you express to your customer a sincere intent on becoming part of his team.  You do this by providing the customer with the expertise and assistance that he cannot get anywhere else, and by communicating to him a “can do” spirit.  This “can do” spirit builds a strong and lasting relationship that produces better results for your customer. (more…)

There are three key business processes involved in operating an entrepreneurial enterprise—management, strategy and operations. Ideally, all three business processes are tightly integrated.  The management process provides a framework for hiring, training, and managing employees.  The process not only helps employees become more effective in their positions, but it also helps to improve employee retention levels.  The strategy process establishes both short-term and long-term goals.  It clearly defines where you want to take your business in terms of earnings, sales, and revenues, and it also clearly defines how you plan to get there.  The strategy process becomes your road map.  And finally, the operation process provides the tools and the resources for achieving your goals.

A business enterprise should be thought of as (more…)