COMPETITIVE INTELLIGENCE AND IMPLICATION FOR COMPETITIVE ADVANTAGE POSITION OF FIRMS IN NIGERIAN MANUFACTURING SECTOR

COMPETITIVE INTELLIGENCE AND IMPLICATION FOR COMPETITIVE ADVANTAGE POSITION OF FIRMS IN NIGERIAN MANUFACTURING SECTOR

ABSTRACT

The study sought to assess the nature of the relationship between competitive intelligence and competitive advantage, ascertain the level of competitive intelligence in the Nigerian manufacturing sector, ascertain the benefits achieved from competitive Intelligence and ascertain the challenges encountered for competitive intelligence in the Nigerian manufacturing sector. The study had a population size of 803, out of which a sample size of 267 was realised using Taro Yamane’s formula at 5% error tolerance and 95% level of confidence. Instruments used for data collection were primarily questionnaire and interview. Out of 267 copies of the questionnaire that were distributed, 245 (92%) were returned while 22(8%) were not returned. The descriptive survey research design was adopted for the study. The hypotheses were tested using Pearson product-moment correlation coefficient, Chi-square, and Z-test statistical tools. The findings indicated that there is a positive relationship between competitive intelligence and competitive advantage (r =.583, P < .05). The level of competitive intelligence in the Nigerian manufacturing sector is significant (X²c= 18.270 > X²t = 9.49; p < 0.05). Competitive intelligence gives the ability to predict movements in the competitive environment and reduces uncertainty of managerial decision (X²c =75.036, > X²t= 9.49; p, < .05).Lack expertise, organizational politics and inadequate resources are challenges encountered for competitive intelligence in the Nigerian manufacturing sector (Zc= 10.723 > Zt = 1,96; p < 0.05). The study concluded that competitive Intelligence is a vital tool for strategic planning and competitive advantage..The study recommended that adequate resources should be made available for personnel to carry out effective competitive intelligence generation, sharing, distribution and deployment to areas of needs.

CHAPTER ONE

INTRODUCTION

1.1              BACKGROUND OF THE STUDY

Competitive intelligence is the action of defining, gathering, analyzing and distributing intelligence about products, customer, competitors and any aspect of the environment needed to support executives and managers in making strategic decision for an organization. Organizations use competitive intelligence to compare themselves to other organizations (competitive benchmarking), to identify risk and opportunities in their markets and to pressure-test their plans against market response which enable them to make informed decisions.

Most firms today realize the importance of knowing what their competitors are doing and how the industry is changing and information gathered allows organizations to understand their strength and weaknesses. With the right amount of information organizations can avoid unpleasant surprise by anticipating competitor’s moves and decreasing response time.

Organizations must be careful not to spend too much time and effort on old competitors without realizing the existence of any new competitors. Knowing more about your competitors will allow a business to grow and make profit and succeed. The practice of competitive intelligence is growing every year, and most competitors and business students now realize the importance of it (Walle , 1999).

Competitive intelligence is a formal program of gathering information on a company’s competitors. It is one of the fastest growing fields within strategic management (Wheelen and Hunger, 2010).

Competitive intelligence is the practice of examining the external competitive environment, direct rivals, economic/regulatory matters, and more, to support the development of more resilient, robust strategy and tactics. The intelligence outcome is meaningful, actionable, and provides an insight about change and future developments and their implications to the organization. Competitive intelligence improves tactical and strategic decision-making through understanding the competitive environment. No business is an island. To succeed….

COMPETITIVE INTELLIGENCE AND IMPLICATION FOR COMPETITIVE ADVANTAGE POSITION OF FIRMS IN NIGERIAN MANUFACTURING SECTOR