Management Theory and Studies for Rural Business and Infrastructure Development, Volume 15

Compettive intelligence in small business

Inga Staškevičiūtė, Bronius Neverauskas

Abstract

While competition is growing, small business‘ ability to survive is becoming increasingly
urgent, since small businesses are not only competing with other small businesses in the same
markets, but also with representatives of big business. One of the most recent scientific management
paradigm, which is unlikely to focus on the quality of the decisions – intelligence. In
the scientific literature it can be found a variety of intelligents forms: business, organizational,
systems, etc. However, one of the intelligence forms, including an analysis of competitors is
competitive intelligence. This form of intelligence can become a backgruond for a qualitative
decision, which forms the assumptions of competitive advantage for development. Competitive
intelligence highlights existing and potential strengths, weaknesses and organization at the same
or similar products or services (specific organizations profiling). Competitive intelligence – is a
continuous process, including information relating to strategic planning, analysis. This is a accumulation
of knowledge and its use. Usually, the competitive intelligence includes knowledge
of the competition, technology, the scope of legislation and the changes of suppliers; the raw materials
market trends, political and economic changes. Competitive intelligence can help small
businesses not only reduce costs and the loss of funds, but also increase revenue, with more
knowledge about the company, its competitors and the market. Most small businesses use the
growth strategy, which is based on a new consumer invention, the market share increase, the
supply of new products, software upgrades. All of this activity is associated with high costs, if
the company does not have enough information - knowledge - intelligence before taking the real
expansion of action. Perceptions principles of the introduction of competitive intelligence in
small businesses, would become a catalyst for other areas of development: the company adopted
effective and timely strategic decisions, resource allocation with strategic activities, to constantly
monitor the external environment and would be seen in time from the emerging opportunities
and new customer needs.

Keyword(s): compettive intelligence, competitive adavantage, small business


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.