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 understanding the external environment, assessing threats and opportunities, and leveraging insights to inform strategy and operations. This discipline is critical for businesses striving to maintain a competitive edge in their industries. Companies that actively engage in competitive intelligence activities are 2.5 times more likely to be industry leaders, as CI helps organizations anticipate market changes, identify opportunities for innovation, mitigate risks, and make informed decisions to capitalize on opportunities.