Question

Propose 2 examples of real-life usage of Competitive intelligence. Examples should include problem itself and solution.

Answer 1

Competitive intelligence is a systematic process of collecting, analyzing and observing relevant data about a certain field and using the collected data in external business environment distributing the same information in the organization to make proper and informed decision. It can be used in several sectors starting fromcompetitors, customers to products, markets and economic, legal factors. We can describe the use of competitive intelligence for two real life cases below.

1. Airline Tickets:

Airline companies often try to increase their profit margin and remain one step ahead from their competitors. But they also need to keep an eye to the satisfaction, security and budget of their costomer. They can not compromize with any of the mentioned crietereas to for increasing their profit.

In order to maintain customer's requirements as well as increase their profit margin they use cometitive intelligence. Every the airline companies change the price of their flight ticket based on several factors. The factors may include demand of the ticket for the route, price that other companies charge for ticket etc. For example suppose a customer is seen to search flight ticket price frequently for a particular route. This means the customer requires to to go to the destined place and he is taken as a potential customer and the price of flight is increased for the customer for that route. Again flight price for certain destinations are increased when demand for flight ticket for the places are high and the ticket price remains low when demand is low. This is called dynamic fare process. Again suppose a company observed that ticket price of a certain destination is increased by other companies. The company must increase their price too. The same thing happens when suddenly ticket price of a certain destination falls.

2. Tech startups:

Startups are those which don't possess much information, financial capability, experience, information as their rival traditional companies have. Hence they often face difficulty to compete with the rival companies with much stronger base. In order to come out from such problem they often focus to bring copetitive intellince in the firld to mitigate their problem.

The startup companies are able to outperform the traditional companies in specific niche segments. They can do the same by focusing on a particular field, processing, reacting adapting rapidly to competitive intelligence insights. They can understand the client's problems and pains and come out with a better solution in comparison to their rivals by having a good focus on the same. This way they can be able to perform properly and creat a good reputation in the market by doing proper utilization of competitive intelligence.

Competitive intelligence is a vital factor for having success in business industries around the world. A huge amount of benifit can be obtained by using chanelising competitive intelligence for improvement of business for a particular organization.