Question

Assume that your client’s company, Glorious Beans, is the current most popular coffee shop in Varsity Lagoon. Your client has become aware that Moonbucks, a long-established and successful coffee company, is about to open in the near vicinity. Moonbucks has leased prime commercial property, which it is refurbishing to a high standard of comfort and convenience for customers, and has commenced an expensive and extensive advertising campaign.

Required: 1. Explain the tools and techniques for developing competitive intelligence. Make appropriate recommendations to Glorious Beans’ management. 2. Having taken your advice, Glorious Beans’ attention now turns to ways of achieving a competitive advantage. Explain why this is important, and the tools and techniques involved in this type of analysis.

Answer 1

Competitive Intelligence is something to have a proactive approach in getting to know what the competitors are upto. Here it involves understanding the competitor's mindset and strategy.

Recommendations to Glorious Bean Management-

Now knowing the moves to be made by the Moonbucks, Varsity London can keep the focus on its competitive edge. If Varsity London has a unique niche in developing high taste coffee, it should keep its vantage point limited to the same. They should keep a watch at the competitior's strategy not necessarily following the same.

Competitive Advantage is of relevance since it helps the product/service to maintain its existence in the cometitive market.

The competitive intelligence tools include SWOT analysis -

Herein the client Glorious Beans is required to asssess its environment and find out the various threats & opportuntities underlying the market scenario.