How To Make Better Business Decisions – 5 Ways Market & Competitive Intelligence Helps

As a business owner or manager, one of the most important things you need to do is make informed decisions that will help your company grow and succeed. However, making the right business decisions is not always easy, especially in today’s fast-paced and highly competitive business world. Fortunately, there are several tools and techniques that can help you make better business decisions. One of these is market and competitive intelligence. In this blog, we will discuss five ways market and competitive intelligence is the answer to “how to make better business decisions”.

Some typical examples of when leaders look for an answer to how to make better business decisions

There are many business decisions that business leaders struggle with, and the specific decisions will vary depending on the industry, size, and type of business. However, some typical business decisions that business leaders may struggle with and need an answer to how to make a better business decision include:

1. Expansion: Business leaders may struggle with the decision to expand into new markets or to open new locations. Expansion can be costly and risky, and it’s essential to assess the potential benefits and drawbacks carefully.
2. Hiring: Finding the right employees is crucial for any business, but it can be challenging to make hiring decisions. Business leaders may struggle with deciding whether to hire from within the company or to bring in external candidates, as well as determining the appropriate salary and benefits for new hires.
3. Investment: Deciding where to invest company resources can be a challenging decision for business leaders. They may struggle with determining which projects or initiatives will have the greatest return on investment and balancing short-term versus long-term goals.
4. Pricing: Setting the right prices for products or services can be difficult, and business leaders may struggle to determine the optimal pricing strategy. They must consider factors such as competition, production costs, and customer demand.
5. Risk management: Business leaders must make decisions about how to mitigate risks and protect the company from potential losses. They may struggle with determining which risks are worth taking and which ones are too risky.
6. Marketing and advertising: Business leaders must decide how to market and advertise their products or services effectively. They may struggle with determining the right messaging, targeting the right audience, and allocating resources appropriately.
7. Technology: Business leaders must make decisions about which technologies to invest in and how to leverage them to improve operations and grow the business. They may struggle with determining which technologies will provide the most significant benefits and which ones are not worth the investment.

These are just a few examples of the many business decisions that business leaders may struggle with. Ultimately, the key is to carefully assess the potential benefits and risks of each decision and to seek input from other stakeholders when appropriate.

What really is MCI and why is it the answer to “how to make better business decisions”?

1. Understanding your market and customers

   Market and competitive intelligence involve gathering and analyzing information about your market, competitors, and customers. By doing so, you can gain valuable insights into what your customers want and need, how they behave, and what they are willing to pay for your products or services. This information can help you make better business decisions by enabling you to tailor your products and services to meet the needs and preferences of your target customers. It can also help you identify new market opportunities, such as untapped customer segments or emerging trends, that you can capitalize on to grow your business.

For example, let’s say you own a restaurant that specializes in Mexican cuisine. By conducting market and competitive intelligence, you discover that there is a growing trend for vegan and plant-based diets among your target customers. Armed with this knowledge, you can add more vegan and vegetarian options to your menu, which will not only appeal to this growing customer segment but also differentiate your restaurant from your competitors.

2. Monitoring your competition to learn how to make better business decisions

   Market and competitive intelligence also involve keeping a close eye on your competitors. By doing so, you can gain insights into their strengths and weaknesses, their marketing strategies, and their product offerings. This information can help you make better business decisions by enabling you to differentiate your products and services from your competitors, identify gaps in the market that your competitors are not filling, and adjust your pricing and marketing strategies to remain competitive.

For example, let’s say you own a small e-commerce store that sells handmade jewelry. By conducting market and competitive intelligence, you discover that one of your main competitors has recently expanded its product line to include high-end luxury jewelry. Armed with this knowledge, you can differentiate your products by focusing on affordable, everyday jewelry that appeals to a wider customer segment. You can also adjust your marketing strategy to emphasize the unique, handcrafted nature of your products, which will appeal to customers who value authenticity and individuality over luxury and brand recognition. Read more: 5 Ways Competitive Intelligence Helps You Stay Ahead of Your Competitors

3. Identifying emerging trends and technologies

   Another way market and competitive intelligence can help you make better business decisions is by identifying emerging trends and technologies that may impact your business in the future. By staying ahead of the curve, you can position your business to take advantage of new opportunities and avoid being left behind by your competitors.

For example, let’s say you own a small clothing boutique that specializes in vintage and retro styles. By conducting market and competitive intelligence, you discover that there is a growing trend for sustainable and eco-friendly fashion. Armed with this knowledge, you can start sourcing materials and suppliers that align with this trend, which will appeal to customers who value sustainability and environmental responsibility. You can also adjust your marketing strategy to emphasize the unique, vintage nature of your products, which will appeal to customers who value individuality and nostalgia over fast fashion and mass-produced clothing.

4. Improving your pricing strategy

   Market and competitive intelligence can also help you make better business decisions by enabling you to adjust your pricing strategy to remain competitive and maximize profitability. By understanding the pricing strategies of your competitors and the value that customers place on your products or services, you can determine the optimal price point that will maximize your revenue and profitability.

For example, let’s say you own a small accounting firm that specializes in bookkeeping and tax preparation services for small businesses. By conducting market and competitive intelligence, you discover that one of your main competitors is offering a lower price point for their services, but they do not offer the same level of expertise and personalized service that your firm does. Armed with this knowledge, you can adjust your pricing strategy to remain competitive while still emphasizing the value that your firm provides. You can also adjust your marketing strategy to highlight the benefits of working with a specialized and experienced accounting firm, such as the reduced risk of errors and increased tax savings.