The Crucial Role of Competitive Intelligence

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ARROWPOINT-MARKET RESEARCH AND INSIGHT SOLUTIONS

• The Crucial Role of Competitive Intelligence in
  Market Entry Strategy and Global Competitiveness

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Key elements which has to be studied before
crafting a market entry strategy for your
business or product
Opportunity may not always manifest as something
tangible, but it is discernible. In today's
dynamic business landscape, numerous external
forces exert unprecedented influence on success.
Relying solely on conventional wisdom and limited
experience is no longer sufficient to navigate
future strategies. To secure a significant
strategic edge, contemporary companies must first
grasp the essential "w's" what, where, and why
concerning the market environment. Meeting such
market demands necessitates the implementation of
a highly effective Competitive Intelligence
strategy.
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Since the onset of globalization, it has become
evident that the Indian retail markets are not
only controlled by established domestic players
but also face competition from emerging mid-cap
players and international counterparts.
Nevertheless, through extensive nationwide market
research spanning various sectors, Indian brands
have identified opportunities despite rising
prices and the emergence of small family units.
By adopting best practices and analyzing trends
in manufacturing, design, and marketing from
diverse countries, these Indian brands have not
only positioned themselves as formidable
contenders but have also surpassed multinational
players on their own turf. In today's business
landscape, where external forces significantly
influence success, relying solely on conventional
wisdom and experience is insufficient for shaping
future strategies, particularly when entering new
markets. What may be overlooked by one company
could present a golden opportunity for another.
To gain a strategic advantage, brands must delve
into the fundamentalsunderstanding the what,
where, and why of the market environment they
intend to penetrate.
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Numerous brands gather data informally on various
marketplace factors and their key competitors.
However, this process is often conducted in an
unstructured manner by internal resources lacking
experience in Competitive Intelligence and
relevant methodologies. Relying on such ad-hoc
intelligence can frequently lead to setbacks,
particularly when assessing opportunities and
risks in new markets. This approach exposes
businesses to a high risk of erroneous
decision-making, which can prove catastrophic.
An effective structured competitive intelligence
approach begins with clearly defining goals for
market entry investigation. At Arrow Point, we
emphasize the following goals as crucial aspects
of a comprehensive market entry investigation 1.
Understanding the Industry Landscape We analyze
the current state of the entire industry and
forecast its future direction. 2. Assessing
External Dynamics We identify potential factors
beyond direct competition that could impact a
business, such as market shifts and key
disruptions on the industry horizon. 3.
Formulating Key Questions and Issues We identify
important questions to ask and key issues to
monitor, while also pinpointing opportunities and
threats within the market. 4. Establishing
Strategic Foundations We lay down a strategic
foundation for the future based on our findings
and insights, guiding our approach to market
entry.
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The aforementioned goals also enable us to gain
an objective understanding of the current trends
within an industry and to identify the degree of
dynamism in trend shifts. Once these goals are
established, the next critical step is gathering
intelligence data, which is essential for
effectively planning a new market
entry. Regardless of whether our client operates
in a B2C or B2B organization, engages in
manufacturing, product sales, or service
provision, our competitive intelligence research
delves deep into nine key areas for any new
market entry study

• Assessment of Market / Industry (Market
  feasibility)
• Identifying and deciphering what target product
  or service is (for example fruit beverage
  versus carbonated beverage).
• Stock keeping units, Pack sizes / overall sales /
  revenues, in currency by value and / or units by
  volume (Global vs National vs Regional vs
  Territory) Performance in past, present, and
  future growth forecast and trends.
• Key Market drivers including consumption demand
  and statutory policy.

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1. Competitor Landscape Identify major
competitors based on sales volume and revenue,
and evaluate their market share. 2. Performance
Trends Analyze market trends to identify
competitors gaining or losing ground, and
understand the reasons behind these shifts. 3.
Market Rank Determine competitors' market
positions, specifying whether they are in the top
five or top ten. 4. Emerging Players Identify
and assess emerging competitors in niche
segments, evaluating their strategies and value
propositions. 5. SWOT Snapshot Provide a
brief SWOT analysis for major competitors,
summarizing key strengths, weaknesses,
opportunities, and threats.
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Competitive intelligence consistently offers
illuminating perspectives, adept at dispelling
misconceptions prevalent across various
industries. It often brings to the forefront
issues that were previously overlooked. For
example, while a common assumption might
attribute a brand's underperformance solely to
incorrect pricing, competitive intelligence
reveals a more nuanced reality. It sheds light on
factors such as product quality, delivery
efficiency, customer service, reliability, and
innovation, among others. Arrow Point, utilizing
Competitive Intelligence tools, has effectively
supported numerous brands in prospering within
the Indian market and competing globally. These
strategic insights have empowered client brands
to navigate market complexities with precision,
implementing well-crafted entry strategies. It is
evident that a meticulously conducted market
entry investigation is a critical tool for
success, offering valuable insights that pave the
way for success in target markets.