The State of Competitive Intelligence within. New Zealand Private and Public Sector Organisations, страница 42

The marketplace has changed from a local community to a global village business model (Amin and

Thrift,   1994).   New Zealand companies are   not   just   competing against              other 

New Zealand companies, but they are competing against other companies who operate in a global marketplace. It is well documented that these global companies are using competitive intelligence not only as tool to monitor and engage with their marketplace, but to also enable strategic planning to grow and establish new markets.      

The aim of this research was to compare the state of competitive intelligence in 2009 with Trengrove and Vryenhoek (1997) study results.  Specifically the perceived value and maturity of competitive intelligence within the New Zealand private and public sectors.  To understand this goal, five key areas were analysed:

1.  The current state of market competition within New Zealand.

2.  The relationship between knowledge management and competitive intelligence. 

3.  New Zealand companies/organisations value of competitive intelligence.

4.  Competitive Risk Factors.

5.  Plans for improving Competitiveness within New Zealand.

Current state of the market competition

This research identified that the surveyed companies/organisations clearly believe that their competitive environment is challenging and is likely to become more challenging over the next three years.  Interestingly, 70% of surveyed companies confirmed that their main competitors were based in New Zealand and they had a strong focus on the New Zealand marketplace only.  As a result of this strategy the surveyed companies may be at a greater risk from external or international competitors.

Also identified, companies with a turn-over of $500k-$10 million had the highest number of competitors (20 or more).  Established companies with a higher turnover tended to have a lower number of competitors, perhaps reflecting the cost of entry barrier and maturity of marketplace.

The relationship between Knowledge Management and Competitive Intelligence

As outlined in the literature review, Nonaka (1991) states that knowledge and strategic use is the key source for creating and maintaining competitive advantage.  This is reflected by all of respondents confirming that they perceived that there was a link between knowledge management and competitive intelligence. However, there appears to be a greater understanding and acceptance of competitive intelligence than knowledge management.  This was highlighted by industries who believed that developing and sharing knowledge was imperative for competitiveness and their success and had a lower response to the effective use of knowledge management (i.e. was well managed and understood), compared to competitive intelligence.  The risk of not managing or understanding knowledge management is that without this core element it would be very difficult to implement and maintain a fully developed competitive intelligence operation.  

Additionally, 88% of the respondents confirm the use of rumours and personal contacts as the process and system used to remain competitive.  This analysis also confirms Rothberg and Erickson (2005) theory that if unmanaged, there can be conflict between knowledge management and competitive intelligence values. It is important to note, due to the medium being unstructured, this channel does not promote the established, sophisticated and coordinated information gathering required by competitive intelligence. 

The value of managing Knowledge Management and Competitive Intelligence

While 79% of the surveyed companies/organisations had established a financial commitment to competitive intelligence, the survey results were very similar to the 1997 survey results.  This would suggest that there has been very little development of competitive intelligence within New Zealand.