What is competitive intelligence and why is it important for businesses?

Competitive intelligence is the practice of gathering, analyzing, and utilizing information about competitors, customers, and market factors to make strategic business decisions. It involves systematically collecting data from various sources and applying analytical frameworks like SWOT and Porter's Five Forces to identify patterns and insights. CI is critical for businesses as it helps anticipate market changes, identify opportunities for innovation, and mitigate risks. Statistics show that 90% of businesses believe CI is essential to their success, and companies actively engaged in CI activities are 2.5 times more likely to become industry leaders.