© Ruth A Pagell COMPETITIVE INTELLIGENCE Industry Research Comparisons Marketing “Now the reason the enlightened prince and the wise general conquer the enemy whenever they move, and their achievements surpass those of ordinary men, is foreknowledge” from Tzu, The Art of War (multiple print and e–book versions)
Competitive intelligence - industry research and benchmarking
Jan 29, 2015
Competitive Intelligence - Industry Research and Benchmarking is one module in a course on Business Research, presented to library and information professionals and business professionals worldwide.
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© Ruth A Pagell
COMPETITIVE INTELLIGENCE
Industry Research
Comparisons
Marketing
“Now the reason the enlightened prince and the wise general conquer the enemy whenever they move, and their achievements surpass those of ordinary men, is foreknowledge”
from Tzu, The Art of War (multiple print and e–book versions)
Copyright Ruth A Pagell
INDUSTRY RESEARCHModule Outline
• Introduction• Competitive Intelligence• Structure of an Industry• Definition of an Industry• Industry Resources• Comparisons• Selected Readings
Copyright Ruth A Pagell
RESEARCH TRIANGLE for Industries
Country and Trade Resources
Company Resources Industry Resources
Data
News
Contacts
Associations
Research Reports
Trade Publications
Scholarly Publications
Industry Classifications
Copyright Ruth A Pagell
COMPETITIVE INTELLIGENCE
Definitions
“CI is generally viewed as the process by which organizations gather actionable information about competitors and the competitive environment and ideally apply it to their planning processes and decision-making in order to improve their enterprise’s performance”From Fleisher and Bensoussan, 2007 pg 6
Whether the need is for knowledge of an industry, a market, a product or a competitor, reliable global information is central to our success.
From Competitive Intelligence Handbook, http://www.combsinc.com/chapt1.htm
Pagell, 1998
Copyright Ruth A Pagell
The global industry What is the structure of the retail industry?
Comparing industries across countries What are the fastest growing retail sectors in Asia?
One industry- one country
What is the outlook for the apparel industry in Singapore?
One company – one industry
How is my company performing relative to its industry?
Companies in an industry
Who are the major retail companies worldwide?
Contribution to a country’s economy
How much does the retail industry contribute to Singapore’s GDP?
STRUCTURE OF AN INDUSTRY
Typical Industry Questions
Copyright Ruth A Pagell
Structure of an Industry
Industry identificationDefinition of the Industry/SectorMarket size, Concentration
Products Performance Companies in Industry Suppliers Distribution (Supply chain. logistics) Customers Trends Import/Export Activity Legal/Regulatory issues Standards Technology Other environmental factors
Barriers to Entry
May be indirect
Impact on profitability
Concentration
Porter, Michael E. Harvard Business Review; Jan2008, Vol. 86 Issue 1, p78-93, 16p,
from 1979
Copyright Ruth A Pagell
DEFINITIONS OF AN INDUSTRY
Working definition of an industry:
“a group of firms producing products that are close substitutes for each other”
Originally from Porter, Competitive Strategy (1980, 2004)
Copyright Ruth A Pagell
Misconceptions• Differences among industry, product,
brand
Retail industry; women’s apparel;
blouses; Zara
• Categorization of companies in an
industry Who does the categorization?
What are the criteria?
• Collection of industry information
DEFINITIONS OF AN INDUSTRY
Copyright Ruth A Pagell
DEFINITIONS OF AN INDUSTRY
Working definition of an industry:
“a group of firms producing products that are close substitutes for each other”
Originally from Porter, Competitive Strategy (1980, 2004)
Categorization by coding schemes from• International Organizations• National Governments• Publishers
Copyright Ruth A Pagell
• ISIC – International Standard Industrial Classification of all Economic Activities rev 4 (2008) (UN)
links to national codes
• NAICS – North American Industry Classification System (US, Mexico, Canada) and U.S. SIC (still standard in commercial sources) rev 2 (2007)
• SSIC – Singapore Standard Industrial Classification (SSIC) (2010)
• NACE –METADATA - Statistical Classification of Economic Activities in the European Community, Rev. 2 rev 2 (2008) (EU)
DEFINITIONS OF AN INDUSTRY
Classification Systems
DEFINITION OF AN INDUSTRYSSIC 2010
SECTION Divisions SECTION Division
A Agriculture and Fishing 01-03 L Real Estate Activities 68
B Mining and Quarrying 08-09 M Professional, Scientific and Technical Activities
69-75
C Manufacturing 10-32 N Administrative and Support Service Activities
77-82
D Electricity, Gas and Air-Conditioning Supply 35 O Public Administration and Defence 84
E Water Supply, Sewerage, Waste Management and Remediation Activities
36-38 P Education 85
F Construction 41-43 Q Health and Social Services 86-88
G Wholesale and Retail Trade 45-47 R Arts, Entertainment and Recreation 90-93
H Transportation and Storage 49-53 S Other Service Activities 94-96
I Accommodation and Food Service Activities 55-56 T Activities of Households as Employers of Domestic Personnel
97
J Information and Communications 58-63 U Activities of Extra-Territorial Organisations and Bodies
98
K Financial and Insurance Activities 64-66 V Activities not Adequately Defined 00
Singapore SSIC 2010 based on ISIC rev 4
Copyright Ruth A Pagell
DEFINITIONS OF AN INDUSTRY
Examples of Standard Codes
Retail Trade 44
Clothing & Clothing Accessory Stores 448 Women’s ClothingStore 44812
Retail Trade ex. Motor
vehicles (G) 47Retail Sale of Textiles, Clothing, Footwear & Leather Articles in specialized stores 4771
Uniquely Singapore Chinese MedicineShops 47723
Retail Trade ex
motor vehicles (G) 47 Retail sale of other goods in specialised stores 47.7
Retail sale of clothing in specialised stores
47.71
U.S. NAICS -2007 SINGAPORE SSIC 2010* EU NACE (rev 2)*
ISIC (rev 4)
S&P Industry SurveysAerospace and Defense Computers: Software Industrial Machinery Real Estate Investment
Trusts
Airlines Computers: Storage & Peripherals
Insurance: Life & Health Restaurants
Alcoholic Beverages & Tobacco
Electric Utilities Insurance: Property & Casualty
Retailing: General
Apparel & Footwear; Retailers and Brands
Environmental & Waste Management
Investment Services Retailing: Specialty
Autos & Auto Parts Foods & Nonalcoholic Beverages
Lodging & Gaming Savings & Loans
Banking Healthcare :Facilities Metals: Industrial Semiconductor Equipment
Biotechnology Healthcare: Managed Care Movies & Home Entertainment
Semiconductors
Broadcasting, Cable & Satellite (Media)
Healthcare: Pharmaceuticals
Natural Gas Distribution Supermarkets & Drugstores
Chemicals Healthcare Products & Supplies
Oil & Gal: Equipment & Services
Telecommunications: Wireless
Communications Equipment Heavy Equipment & Trucks Oil & Gas: Production & Marketing
Telecommunications: Wirelines
Computers :Commercial Services
Homebuilding Paper & Forest Products Transportation: Commercial
Computers: Consumer Services & the Internet
Household Durables Publishing
Computers: Hardware Household Nondurables
Copyright Ruth A Pagell
OneSource – Codes for Zara (Inditex Group [ INdustria de DIseño TEXtil, S.A.])
DEFINITIONS OF AN INDUSTRYExamples of Publishers’ Codes
Factiva
Copyright Ruth A Pagell
INDUSTRY RESOURCESSources of Industry Information
• International and regional organizations
• Country – level governments and organizations
• Trade sources
• Commercial sources, including
industry reports, news and books
Copyright Ruth A Pagell
• UNIDO UN Industrial Development Organization Industry statistics by country Limited free statistics NOTE: check out value added and related indicators
by industry
• OECD (Organization for Economic Cooperation and Development Industrial Production and Retail Trade (index) - free sites
• Eurostat Industry, Trade and Services –Structural Business Statistics
• globalEDGE Industry Profiles on 20 global industries, includes “industry memo” summary, risk, concentration, global companies (from Michigan State University)
INDUSTRY RESOURCESIGOs, NGOs, Local Governments and Universities
Copyright Ruth A Pagell
• Industry Canada - Reports by Sector and Industry Statistics
• U.S. International Trade Administration (Manufacturing and Services)
• Japanese External Trade Organization (JETRO) including Market Reports
• Statistics Singapore – monthly and annual surveys
INDUSTRY RESOURCESGovernment Sources
Copyright Ruth A Pagell
INDUSTRY RESOURCESGovernment Applications
U S Economic Census-industry data Used to measure economic activity, for government research, for
benchmarking
By geographic area Information released through American Factfinder Zip codes included in Country Business Patterns
Using Mapping Select maps > Thematic Maps from American Factfinder
Copyright Ruth A Pagell
TRADE ASSOCIATIONSWebsite Directories:
Google Directory of Singapore AssociationsYahoo Directory of Singapore AssociationsExample of individual association:The Association of Banks in Singapore (ABS) Includes Financial Handbook for SMEs
TRADE PUBLICATIONS Retail Asia Online Automotive News
GENERAL PRESS Factiva – Search statement, .i.e. industry and (anal* or impact or grow* or trend*) Industry expanded index, i.e. retail>specialty stores
BOOKS SMU Library Wordcat.org
INDUSTRY RESOURCESMisc.
Copyright Ruth A Pagell
INDUSTRY RESOURCESCommercial Reports
TYPES OF REPORTS Industry Analysis
Investment Bank Reports
Market Research Reports
COMMERCIAL SOURCESBusiness Insights – Healthcare Reports
S & P NetAdvantage*(10 Global Industries)
ThomsonOne Banker Aggregator
MarketLine – Datamonitor reports
Emerging Markets Information Service– Aggregator of different types and sources
Hoovers Industry Reports – overview
on web; snapshot in LexisNexis
Copyright Ruth A Pagell
OBJECTIVES
• Awareness of data collection issues
• Understanding of what rankings really mean
• Access to benchmarking resources
BENCHMARKING & RANKINGS
Copyright Ruth A Pagell
INDUSTRY RESEARCHData Collection Issues
• At what level of business activity is the data collected? Enterprise or establishment?
• At what level of aggregation is the industry defined?Two digit? Four digit?
• How frequently is the data collected and disseminated? Every 10 yrs, 5 yrs, annual, monthly?
• What codes are being used and have they been redefined?
• What is being measured?Value added? Sales? Volume? Local or converted currency?
Copyright Ruth A Pagell
Who are the top biggest companies in the world?
Who are the top enterprises in Singapore?
Who are the largest retail companies in Asia?
Who are the major retailers in Singapore?
RANKINGS QUESTIONS
Copyright Ruth A Pagell
WHO IS THE WORLD’S BIGGEST COMPANY?
A. Royal Dutch Shell
B. JPMorganChase
C. Toyota
D. Cargill
E. Wal-Mart
F. Fannie Mae
G. Gazprom
H. BNP Parabas
I. PetroChina
RANKINGS QUIZZ
Copyright Ruth A Pagell
Who is Singapore’s Biggest Company?
A. Temasek Holdings
B. Shell Eastern Trading
C. Singapore Telecommunications
D. Keppel
E. Flextronics
RANKINGS QUIZZ
Copyright Ruth A Pagell
RANKING INDICATORS
DATA ELEMENTS
RANKING CATEGORIES
ENTERPRISE TYPES
Sales/Revenue/Turnover
Global Parent
Net Income Regional / Asia Subsidiary; Headquarters
Market Value Country Listed
Composite Industry Private
Employees
Copyright Ruth A Pagell
FortuneGlobal 500
All countriesListedFinancialsRevenuesIndustries
Financials: US Dec 2009Issue: July 26 2010
ForbesWorld’s 2000 Largest PublicComposite
All countriesListed & PrivateAsia’s Best Under 1bil
Sort by Industry
Financials: Latest AvailableMarket Cap: April 1 2010Issue: July 21, 2010
FTGlobal 500
All countriesListedMarket ValueRank by Sector
Annual with Quarterly updateMarket Cap: March 31Issue: May 28, 2010
RANKING SOURCES
Copyright Ruth A Pagell
INDUSTRY RANKINGS
Fortune, July 20, 2009
Copyright Ruth A Pagell
SINGAPORE RANKINGS
Singapore 10000 (subscription through NLB)
Copyright Ruth A Pagell
Singapore Rankings
Singapore 1000 Companies Ranked Business Classification with Industry Average
Searched 19/7/ 2010
Copyright Ruth A Pagell
BENCHMARKINGPeer Analysis
Identify Company
Identify Peer Group or use database selection
Ratios / Peer Analysis in Thomson One Banker
Peer Analysis and Industry Norms (RMA) in OneSource
BVD databases (not available)
Copyright Ruth A Pagell
PEER ANALYSISSample from Bureau Van Dijk
Value for Company
Median of the group
Mean of the group
Number of companies
Current Ratio
1.30 1.38 1.58 26
Liquidity Ratio
0.69 0.84 1.01 26
Comparing a Company to its Group
Year
Financial Ratios
Copyright Ruth A Pagell
BENCHMARKING & RATIOS
EU (registration required to view databases)
Operating Expenditures Productivity Measures
Canadian Manufacturing Costs by Industry
UK Competitiveness Indicators Specific stats by region
EIU for Country’s ICT readiness E-readiness
Copyright Ruth A Pagell
INDUSTRY SPECIFIC Rankings and Performance
Industry Week for U.S. manufacturing Rankings of Manufacturing firms Best Plants
Information Week for innovate IT
Global Powers of Retailing
Yahoo Finance Comparisons and competitors based on financial indicators for companies traded on U.S. exchanges and an industry center
Copyright Ruth A Pagell
BENCHMARKING & RATIOS
EU (registration required to view databases)
Operating Expenditures Productivity Measures
Canadian Manufacturing Costs by Industry
UK Competitiveness Indicators Specific stats by region
EIU for Country’s ICT readiness E-readiness
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