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This project is funded by the EU Shaping
Business Strategy
Through
Competitive Intelligence
Strategic Use of
Intellectual Property Information
Business Strategy Definition
This project is funded by the EU
• “A course of action including the specification of resources
required, to achieve a specific objective”
• Strategy is the means for achieving the business objectives.
• Plans a company uses to gain competitive advantage over
competitors in a market.
• An advantage that a firm has over its competitors, allows it to
generate greater sales or margins and/or retain more customers
than its competition.
Formulation
Implementation
INTEGRATION
the match between the organization’s strategy and its industry structure IOT
centers on the relationship between an organization’s internal aspects and its strategy
RBV
2 Business Strategy
Competitive Advantage
Competitive Scope
Cost Differentiation
Broad Target Cost Leadership Differentiation
Narrow Target Focus
Generic Strategy Options
Successful business strategy requires
awareness about the company’s external
environment, including its customers,
competitors, industry structure, competitive
forces, etc…
The Strategic Planning Process
Objectives
Environmental
Scan: External & Internal
Strategy Choice
Structuring
Implementing
Results
Fee
dbac
k
Strategy
Formulation
Strategy
Implementation
Strategy
Alternatives
The Strategic
Planning Process Goal / Objectives
Environmental
Scan
Strategy Choice
Structuring
Implementing
Results
Fee
dbac
k
Strategy
Formulation
Strategy
Implementation
Strategy
Alternatives
CI:IP
Products / Markets
Processes
Strategy Formulation Process Environmental Scan
External Environment
PEST: Macro Environment
•Political
•Economic
•Social
•Technology / RD
Industry Structure: Porter’s 5 Forces Model
SUPPLIER POWER
Supplier concentration
Importance of volume to supplier
Differentiation of inputs
Impact of inputs on cost or
differentiation
Switching costs of firms in the
industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in
industry
BARRIERS
TO ENTRY
Absolute cost advantages
Proprietary learning curve
Access to inputs
Government policy
Economies of scale
Capital requirements
Brand identity
Switching costs
Access to distribution
Expected retaliation
Proprietary products
DEGREE OF RIVALRY
-Exit barriers
-Industry concentration
-Fixed costs/Value added
-Industry growth
-Intermittent overcapacity
-Product differences
-Switching costs
-Brand identity
-Diversity of rivals
-Corporate stakes
THREAT OF
SUBSTITUTES
-Switching costs
-Buyer inclination to
substitute
-Price-performance
trade-off of substitutes
BUYER POWER
Bargaining leverage
Buyer volume
Buyer information
Brand identity
Price sensitivity
Threat of backward integration
Product differentiation
Buyer concentration vs. industry
Substitutes available
Buyers' incentives
Looking at World-Class Competitors
World-class competitors are
proving that the best way to
match your rivals' strengths is to,
well, copy them.
“BENCHMARKING”
Not only is it both legal and ethical, the
practice is virtually mandatory for any
company that hopes to be considered a
“world-class competitor”.
Benchmarking is:
The formal process of measuring, and comparing a
company's operations, products, and services
against those of top performers (both within and
outside that company's primary industry).
The aim of this process is to identify the leading
companies' secrets to success, and copy them.
Benchmarking as a management practice, has
been growing explosively as it directs a
company's focus outside its own walls, and is
aimed directly at the marketplace and the
competition
Source: Society for Competitive
Intelligence Professionals
The Competitive Intelligence Cycle
Planning
&
Direction
Collection
Analysis Dissemination
Feedback
“Competitive Intelligence is a systematic and
ethical program for gathering, analyzing, and
managing external information that can
affect your company's plans, decisions, and
operations”
Very Little Use
• Product purchasing
• Freedom of information act
• Focus groups
• Case studies
• Mail questionnaires
Sources of CI (by extent of use)
Competitive Intelligence Sources
High Use
• Trade journals
• External (on-line) databases
• External hard copy documents
• Employees
• Industry experts
• Trade organizations
Moderate Use
• Sales representatives
• Customers
• Internal documents
• Internal databases / CD-ROM
• Telephone interviews
Low Use
• Government records
• Direct observations
• Clipping services
• Security analysis
• Competitors (contact directly)
• Personal interviews
• Suppliers
2002 Society of Competitive Intelligence Professionals Based on the Society of Competitive Intelligence Professionals 1997 Salary Survey
Competitive Intelligence is a process which gives insight on the future direction of the market. This process involves stages from data to information to intelligence.
“Competitive Intelligence is a systematic and ethical program for gathering, analyzing, and managing external information that can affect your company's plans, decisions, and operations”
Competitive Analysis Benchmarking
State of Mind Catch up with Competitor Over take competition Reach Excellence
Methodology Measure Performances Compare costs Quantity Gaps
Understand Mechanisms Compare Processes Indentify Positive Solutions
Sphere of activity Direct Competitors Sector-based comparisons
Inter-sector-based comparisons competitors or not
Source of Information Sector-based analysis of competitors
Leader Companies in their sector
Fields of Application Enter field of Activity Organization / Product
One method / one Function
Difference Between Competitive Analysis and Benchmarking
The Strategic Planning Process
Objectives
Environmental
Scan: External & Internal
Strategy Choice
Structuring
Implementing
Results
Fee
dbac
k
Strategy
Formulation
Strategy
Implementation
Strategy
Alternatives
Strengths and Weaknesses:
RBV: Tangible & Intangible
Intangibles: R&D, IP, HR, Internal Processes, L&G
BSC: L&G, Internal Processes
Strategy Formulation Process
Environmental Scan: Internal Environment
28
Intellectual Property Strategic Resources
28
Analysis of Intellectual Property portfolios of
competitors may reveal a great deal about the
competitors’ strategies.
• Patents
• Utility models Innovation
• Trademarks Brand
• Industrial Designs Design
Processes
Products Services
Innovation Process 1
• Market Need / Problem recognition
2 • Idea Generation
3
• R&D / Feasibility (Technical and Financial)
4 • Implementation
5 • Commercialization
Introduce Change to
Marketable Value Added
To introduce change to products, services, or
processes with added value to the market
through the management of knowledge,
sciences, and technology.
The Strategic
Planning Process Goal / Objectives
Environmental
Scan
Strategy Choice
Structuring
Implementing
Results
Fee
dbac
k
Strategy
Formulation
Strategy
Implementation
Strategy
Alternatives
CI:IP
Products / Markets
Processes
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