The Crucial Role of Competitive Intelligence

1. ARROWPOINT-MARKET RESEARCH AND INSIGHT SOLUTIONS; The Crucial Role of Competitive Intelligence in Market Entry Strategy and Global Competitiveness

2. 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.

3. 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 fundamentals—understanding the what, where, and why of the market environment they intend to penetrate.

4. 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.

5. 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.

6. 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.

7. 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.