When someone invites you to a party, is your first question “Who else will be there”? Then you know the importance of gathering intelligence. You don’t want to walk into a situation without understanding what you’re walking into, and you definitely don’t want to start a business, or try to grow an existing one, without knowing where you’re going, how to get there, and who is already there.

Whatever you are doing in business, chances are it’s at least a little similar to something someone has already done. You have competitors, some more successful than others, and knowing what does and does not work for them will save you time, money, and effort as you plan out a growth strategy for your business. The way we go about doing this is through competitive intelligence.

What Is Competitive Intelligence?

Intelligence in this sense isn’t about smarts; it’s about information. Competitive intelligence involves gathering information about the market and your competitors in order to make informed business decisions. You’ll get a clearer picture of how the past decisions taken by businesses in your sector led to their present market position so that you can make an effective plan for the future. The data you gather will identify gaps in the market and help you develop growth strategies, position yourself in the market, and solidify your brand identity.

It's not just people involved in business strategy who engage in competitive intelligence. In the B2B sector, salespeople also benefit from knowledge of the market. Look at it like studying a company’s website before applying for a job. Knowing what a company does, how they do it, and what they stand for will help you tailor your cover letter and interview answers to that company’s needs. Likewise, salespeople provided with the right intelligence are better equipped to approach a sale in a way that resonates with the customer.

Gathering and Analyzing Competitor Data

While the CIA relies on spying and espionage to gather intelligence on their competitors, gathering competitive intelligence in the business world must adhere, obviously, to the law and to principles of business ethics. So if you’re not putting on your hoodie and hacking into your main competitor’s database or throwing their CEO into the back of a black van, where are you finding intelligence on your competitors? You’ll find it in publicly available sources such as:

• Industry publications
• Company websites
• White papers
• Interviews with customers and suppliers
• News articles and press releases
• LinkedIn profiles
• Trade shows
• Government data and public records

You want to use this information to understand everything about the operations of your biggest competitors. This covers every relevant aspect of business, from the technology they use to their organizational structure to their branding, marketing, and merchandising. With this information in hand, you’ll understand how they operate, what challenges they face, and what opportunities are available to you.

Identifying Gaps in the Market

Sometimes, it’s just as important to know what is not there as what is there. Market gap analysis involves identifying customer demand that is not being met. This is important for manufactures with excess capacity, for suppliers looking to develop new services, or for retailers looking to expand the breadth of their inventory. It will help you decide if you’ll be able to command a large market share or corner a smaller niche.

You’ll also begin to recognize what kind of customers you’re best positioned to serve. If your competitors build their brands around low prices, for example, there may be space to become the high-quality alternative, offering premium products and customer service.

Developing Growth Strategies

It’s not always profitable to be a trailblazer. Look no further than the difference between Google and Apple’s rollout of AI products. Perhaps afraid of being left in the dust by other generative AI developers, Google rushed the release of their generative AI search feature. The result was, at best, an annoyance you have to scroll past to get to the real search results and at worst, a dangerous misinformation generator. Apple, on the other hand, is content to take a more measured approach, cautiously rolling out AI features that avoid the embarrassing missteps of the early adopter, missteps that could hinder your long-term growth.

Often, it’s better to let someone else go first so that you can avoid their mistakes and improve on their successes. It’s also a good idea to base business decisions on measurable outcomes. One course of action might feel right to you, but vibes and personal preference are no way to run a business—you need solid information to make informed strategic decisions.

Analyze and Consider, Don’t Mimic

While competitor intelligence can help you make decisions, it’s not just a matter of seeing what your most successful competitor did doing the same. Solutions that worked in the past might not perfectly map onto the present. Competitive intelligence helps you make decisions, but it cannot make them for you.