Competitive intelligence,the systematic collection and analysis of information about rival firms,is:
A)A practice which,though legal in most countries,is unethical
B)Likely to distract firms from their efforts to establish positions of competitive advantage based upon their distinctive strengths
C)An important component of a firm's environmental scanning and strategic analysis
D)A useful activity because it can help firms imitate the strategies of their more successful competitors.

Question

Quizplus · Accepted Answer

Competitive intelligence is an important component of a firm's environmental scanning and strategic analysis as it helps firms to understand the capabilities and strategies of their competitors and develop effective responses to competitive threats. It is a legal and ethical practice that can support a firm's efforts to establish positions of competitive advantage based upon their distinctive strengths. While it can involve imitating successful strategies of competitors, this is just one aspect of a broader process that also involves identifying emerging competitive threats and opportunities.

Competitive Intelligence,the Systematic Collection and Analysis of Information About Rival