Michael_A._Hitt,_R._Duane_Ireland,_Robert_E._Hosk

66 Part 1: Strategic Management Inputs

gathering methods are governed by a strict set of legal and ethical guidelines.^132 This

means that ethical behavior and actions, as well as the mandates of relevant laws and

regulations, should be the foundation on which a firm’s competitive intelligence-gath-

ering process is formed.

When gathering competitive intelligence, firms must also pay attention to the com-

plementors of its products and strategy.^133 Complementors are companies or networks

of companies that sell complementary goods or services that are compatible with the

focal firm’s good or service. When a complementor’s good or service contributes to

the functionality of a focal firm’s good or service, it in turn creates additional value for

that firm.

There are many examples of firms whose good or service complements other compa-

nies’ offerings. For example, firms manufacturing affordable home photo printers com-

plement other companies’ efforts to sell digital cameras. Intel and Microsoft are perhaps

the most widely recognized complementors. The Microsoft slogan “Intel Inside” demon-

strates the relationship between two firms that do not directly buy from or sell to each

other but their products are highly complementary.

Alliances among airline companies such as Oneworld and Star find member compa-

nies sharing their route structures and customer loyalty programs as a means of comple-

menting each other’s operations. (Alliances and other cooperative strategies are described

Complementors are
companies or networks
of companies that sell
complementary goods or
services that are compatible
with the focal firm’s good or
service.

Figure 2.3 Competitor Analysis Components

Future Objectives

• How do our goals compare with our
  competitors’ goals?


• Where will emphasis be placed in the
  future?


• What is the attitude toward risk?

Current Strategy

• How are we currently competing?


• Does their strategy support changes
  in the competitive structure?

Assumptions

• Do we assume the future will be volatile?


• Are we operating under a status quo?


• What assumptions do our competitors
  hold about the industry and themselves?

Capabilities

• What are our strengths and weaknesses?


• How do we rate compared to our
  competitors?

Response

• What will our competitors do in the
  future?


• Where do we hold an advantage over
  our competitors?


• How will this change our relationship
  with our competitors?