Competition provides the firm the opportunity to look into the future. Once all of the information is gathered, a firm can imagine the competitor’s next move and either do the same if the market supports it or take a different route, cutting the competition off at the pass. For example, the home improvement stores Home Depot and Lowe’s are often within minutes of each other or even right across the street. Gen- erally, one store decides to move into an area before the other, and the other watches and sets up shop nearby. Once the competitor has found the location, the firm can take action.
Competition creates a sense of urgency and often increases sales for all the competitors who are willing to put up a fight. Once the firm’s competition is known and understood, the next oppor- tunity for the firm is to “go deeper” by implementing competitive intelligence.