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Evaluate each of the following approaches that a business firm could use to gather
information about competition. For each approach, mark your feeling about its
appropriateness using the following scale:
1. definitely not appropriate, 2. probably not appropriate, 3. undecided, 4. probably
appropriate, and 5. definitely appropriate
The business firm should try to get useful information about competitors by:
__5___ Careful study of trade journals
Watching the growth and/or decline of competitors is good for developing businesses.
__1___ Wiretapping the telephones of competitors
Illegal if youre not the U.S. government!
___4__ Posing as a potential customer to competitors
Understanding how a competitor works from the inside keeps a company abreast with up
to the minute information learned hands on.
____2_ Getting loyal customers to put out a phone "request for proposal" soliciting
competitors bids
Asking your customers to solicit business from a competitor is unethical and could end up
back firing by losing the customer to the competitor.
__5___ Buying competitors products and taking them apart
Analyzing the product of the competitor gives the company an edge and knowledge base
to stay ahead of the competition.
___5__ Hiring management consultants who have worked for competitors
Who better to hire then workers who know the ends and outs of a competitors business.
But these workers should be monitored to find out where there loyalties truly lie.
_3____ Rewarding competitors employees for useful "tips"
Information is valuable but I think the ethical issue gets in the way of my agreement with
this type of reward system.
__4___ Questioning competitors customers and/or suppliers
Asking consumers what they like about a competitor has no real negative effect. This is
