From Michael Porter to Kodak: Understanding the Changing Competitive Landscape
In the mid-1980s, Michael Porter realized that no company could control its external environment. To sustain its business and adapt to the changing environment, it must develop and maintain competitive advantages. Take, for example, Kodak, which stuck to film photography for a long time and eventually lost the game. Who could have imagined when Sony launched the Mavica in 1981 that this first digital camera would become a disruptive technology, revolutionizing photography and making Kodak photographic film obsolete?
Market intelligence helps company management understand and qualify for changes in terms of threats and opportunities. According to Michael Porter, market intelligence is about "providing the right information, to the right person, at the right time, so they can make the right decision". Therefore, it is a tool for decision-making, whether tactical or strategic. But making the right decision at the right time requires the convergence of several factors. You need to monitor your external environment to detect weak signals and signs of change and understand what is changing the situation in time. Strategic monitoring is integrated into the market intelligence approach and is at the forefront of the intelligence cycle. Applying the six-step intelligence cycle (planning, collecting, processing, analyzing, reporting and controlling) will help you better understand your external environment and facilitate decision-making based on relevant information.
The intelligence cycle in six main stages
Layout
This involves defining a Domain of Inquiry (KITs) and breaking it down into a set of Essential Questions (KIQs). This information search plan includes identifying and mapping secondary and primary sources of information in response to the main questions.
Group
The process of collecting secondary and primary information (HumInt) is like putting together a puzzle. Monitoring must be continuous to detect weak signals and to identify indicators of the external environment.
Therapy
This is a critical step that consists in systematically verifying the hypotheses put forward and the results obtained. It is necessary to ensure that the triangular information is correct.
Analysis
The use of analytical tools allows the formulation of conclusions and recommendations for decision-making.
Reports
This step determines the success or failure of the market intelligence function. It should be managed by management and feedback should be provided to the decision maker who is able to make the decision.
Control/Feedback
The information cycle is cyclical and market intelligence is a support function with a primarily advisory role.
The issue of comments on the use of intelligence information by decision makers is essential. The primary goal of market intelligence is to inform decisions in order to drive action (actionable decision making) and improve current and future intelligence processes.
It is important to develop a critical mind: not to take all the information collected seriously. We must question and question assumptions systematically, because it is not an exact science.
Towards Market Intelligence 2.0: Exploring Current Tools and Technologies
Social Media Analysis
Social media platforms are home to a wealth of information about consumer preferences, product opinions, and emerging trends. Social media analytics tools like Brandwatch and Mention allow companies to monitor online conversations, identify emerging trends, and understand customer perceptions.
Data extraction
Data mining is the discovery of patterns and relationships in large sets of data. Tools like RapidMiner and KNIME allow companies to mine their internal data, as well as external sources, to identify hidden trends, buying patterns, and market opportunities.
Web Abstraction
Web scraping involves extracting data from websites. Tools like Scrapy and Beautiful Soup help companies gather information such as competitor pricing, product ratings, and customer reviews, which can inform their business strategies.
Competitive Intelligence
Monitoring competitors' activities and performance is crucial. Tools like Kompyte and Crayon provide real-time insight into competitors' movements, including price changes, product launches, and marketing campaigns.
Predictive Analysis
Predictive analytics uses statistical models and algorithms to identify future trends. Tools such as IBM SPSS and SAS allow companies to predict consumer behavior, demand fluctuations, and market shifts.
Artificial Intelligence and Machine Learning
Artificial intelligence and machine learning are revolutionizing the way companies approach market information. These technologies can analyze massive amounts of data to identify complex patterns and provide valuable insights. Platforms like Tableau and Power BI include AI capabilities to help companies visualize and interpret their data.
Text parse:
Text analysis is the process of extracting meaningful information from text data, such as customer comments, product reviews, and news articles. Tools like Lexalytics and MonkeyLearn use natural language processing to decode this textual data and derive actionable insights.
Automated Competitive Intelligence
Automated competitive intelligence platforms such as Crayon and Klue combine information from a variety of sources to provide actionable insights into competitive activities. These tools help companies to monitor their competitors proactively.
Sentiment Analysis
Understanding how customers feel about a brand, product, or direction can influence business decisions. Sentiment analysis tools such as Semrush and Brand24 identify sentiment expressed in social media and online comments.
Tech Monitoring
Companies must also monitor technological developments that may affect their industry. Tools like TechCrunch and Crunchbase provide information about the latest innovations, mergers and acquisitions, and emerging startups. In conclusion, modern market intelligence relies on a variety of tools and technologies to help companies stay competitive in an ever-changing business environment. From social media analysis to the use of artificial intelligence and machine learning, these methods provide deep insights into market trends, consumer behaviors, and competitive activities. By adopting these tools and technologies, companies are better positioned to make informed decisions and remain flexible in a dynamic business environment.