kemccurdy

Competitive Intelligence is the systematic gathering of open information that when collated and analyzed provides a better understanding of a competitor firm's structure, culture, behavior, capabilities, and weaknesses. (FBIG. 2008.) Competitive Intelligence is becoming increasingly significant especially with the rise of global business. Understanding what competitive intelligence is and how to manage it will push your company forward in business. CI is evolving and past trends can be analyzed to help define what role it will play in the future. This change has been driven heavily by declining trade barriers and dramatic improvements in communication, information, and transportation technologies. (Hill, 2003. Page 271.) CI or other analyzed information is needed to improve planning and decision-making processes used by multinational business organizations in order to improve their business.

Although the growth of global business and e-commerce are productive, they also pose many different challenges than doing business domestically. When doing business with a company that you have never met or a company from a different company you must be aware of the actions you take. You should make sure to be sensitive to cultural, societal, regulatory, legal, and economic factors. (Blenkhorn and Fleisher. Page 5.) Another challenge that a business may face is that they are unfamiliar with the business. The customers, culture, workforce, and “style” of doing work may be different. Companies need to be completely prepared when doing business in another country to make sure that they do not offend them. If two like companies are competing for the same job and have the same qualifications, but one company remembers and respects the culture of the country; they are more likely to receive the job.

Most of the differences between Eastern and Western’s perception of CI is due to differences in culture and values, history, institutional contexts, and technological development. The Eastern World views CI as a natural part of business. They feel that it will happen no matter how much they study it or try to apply it. Their practices are discussed openly and freely. On the other side, Westerners feel that competitive intelligence is a part of weaponry or “arsenal.” (Hulnick, 2002. Page 274.) They feel that their strategies and discussions need to be kept secret within their organization. In Western countries, it is common to link the notion of CI with unsavory practices such as industrial espionage. The authors feel that between now and 2015 there will be a convergence of both the Eastern perceptions and the Western perceptions. (Blenkhorn and Fleisher, 2005. Page 274.)

Sources:
Blenkhorn, David and Craig Fleisher. (2005). Competitive Intelligence and Global Business. Westport, Connecticut: Praeger Publishers.
Hill, C.W.L. (2003). International Business: Competing in the Global Marketplace. 4th ed. New York: McGraw-Hill.