Due to the fact that China's political system and some business practices of Chinese market participants can lead to unfair competition, Western companies are forced to increase their attention on the competitive environment and to obtain more competitive information, compared to other markets. In China, Competitive Intelligence in the sense of early research, observation, and analysis of competitors, is a crucial success factor. It is an essential tool of competitiveness and an indispensable basis for both strategic decisions and tactical measures in the day-to-day business.
While Competitive Intelligence in Europe and USA is ethically and legally restricted, the Chinese law allows some investigative research methods and undercover activities. In many cases, professional investigators, who act within the legal framework, are involved in CI. Their instruments are undercover observations or elicitation of information by skillful conversations, for example.
Important questions of CI projects
- Which competitors will attack us?
- Which weak points will they attack?
- What are their targets, strategies, and tactics?
- What are their strengths and weaknesses?
- Which markets and channels do they target - with which products and services?
- What technologies, innovations, and IPR do they own?
Flyer Competitive Intelligence in China