Competitive Intelligence in Asia: The View Through Different Lenses

1
Competitive Intelligence in Asia The View
Through Different Lenses

• By Group 5
• Ashley Jacobs
• Alauna Wolfe
• Amanda Wesson
• Jean-Philippe Ravart

2

• When looking at Competitive Intelligence, global
  position plays a key role in a companys success
• Competitive Intelligence is viewed differently in
  the West than in the East for example

3
Competitive Challenges in Asia

• There are several factors that get in the way of
  competitive intelligence in Asia
• These factors include
• Data is harder to find
• Data accountability is very questionable than in
  other regions of the global market
• Many markets in this region are self-made
  businesses and are harder to probe into by the
  public

4

• Recently, there has been a change in the way that
  businesses are viewed in Asia
• This can be contributed to such factors as
• Decision making in Asia requires more detailed
  analysis than ever before
• Information services are required to be more
  in-depth and of better quality
• Even though there is a lot of information flowing
  through Asia, it is still not easily accessible
• All information must be interpreted

5

• The Asian market includes wide variety of markets
  such as Pakistan, Philippines, Japan, Korea,
  Cambodia China, Indonesia, Laos, Brunei, India,
  and Thailand just to name a few
• Because of the vast nature of the Asian market,
  a different approach must be taken when handling
  CI in Asia

6

• There are four main factors that can be analyzed
  to get a better understanding of CI in Asia
• These factors include
• The Need
• The Plan
• The Doing
• The So What test
• The Actions

7
The Chinese
8
Past

• Migration from China to other parts of Asia dates
  back to pre-fifteenth century
• Relatives/neighbors
• Mutual help societies
• A cohesive web of interlocking organizations and
  relationships firm base
• Expansion acquiring new companies, not
  enlarging existing ones

9
Present

• Ethnic Chinese comprise more than 80 of
  billionaires in SE Asia
• Family firms

Ethnic Chinese Population and Market Share of
Market Capital
10
Characteristics of the Chinese

• Highly centralized decision-making
• Low-margin high-volume products
• Tight inventory control
• Lower transaction costs
• Internal financing
• Tendency to undervalue services other
  intangibles

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Some Predominant Issues

• Determining needed information and where to get
  it can be difficult
• Comparisons have been based on logic and
  quantitative analysis
• Good relations with govt. and public officials at
  multiple levels was/is important for commercial
  success
• Many commercial decisions are based on political,
  not economic criteria

12
Public Information Three Areas

• Underestimation
• Overestimation
• Intentional Misleading

13
Three Elements to Know

• Business Ownership
• Government Involvement
• Business Location

14
The Japanese
15
Joho

• Information and Intelligence
• Believed in, Admired, and Feared

16
Three Key Factors

• Information is not taken for granted
• Group loyalty is highly valued
• Uncertainty avoidance is emphasized

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Limitations for Westerners

• 96 of competitive information is available only
  in Japanese (Stern 1997)
• Low computer usage by government and industry
  bodies
• Poor information disclosure
• Rivalry, Ethics, and poor intellectual property
  protection

18
Key Government Organizations

• Ministry of Economy, Trade, and Industry (METI)
• Japanese External Trade Organization (JETRO)
• Japan Chamber of Commerce and Industry (JCCI)

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Conclusion

• No two markets in Asia are identical, Competitive
  Intelligence must be done on a country-by-country
  basis
• Competitive Intelligence professionals have to be
  aware on how gather information with regards to
  all the differences in languages, understanding,
  culture, positions in history

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Competitive Intelligence process

• Guideline
• Step 1 Defining requirements
• Step 2 Resourcing the Project
• Step 3 Information collection
• Step 4 Analysis and presentation