In an increasingly challenging business environment, having tools to help us understand market forces is crucial. Michael Porter’s 5 Forces allow us to structure competitive analysis in a precise way, helping us to focus competitive intelligence and surveillance where it has the most impact.

In this publication, we will delve into how to combine Porter’s forces with competitive intelligence and surveillance to ensure that we are always one step ahead.

It was Harvard University’s Michael Porter who identified five key determinants of firm competitiveness: new entrants, customers, suppliers, competitors and substitutes.

Based on Porter’s competitive forces, it is possible to identify four types of vigilance

In order for decision-makers to make the right decisions for the organisation, they must have information on the state and evolution of these forces, and how they may affect the organisation in the short and medium term, turning these threats into opportunities.

• Commercial Surveillance: collects and analyses information on products, markets, customers and suppliers (market evolution, new markets, evolution of customer needs, customer solvency, new products offered by suppliers, etc.).
• Technology Surveillance: collects and analyses information on current and future technologies capable of intervening in new products, services or processes of the organisation.
• Environmental Surveillance: collects and analyses information on external events that may affect or condition the organisation, such as legislation, regulations, standards, politics, the environment, etc.
• Competitive Surveillance: collects and analyses information on current and potential competitors (investment policy, entry into new activities, sales and distribution techniques, communication policy).

By combining the different types of monitoring, companies gain a more holistic and detailed understanding of their competitive environment, enabling companies to make more informed and strategic decisions based on solid data and an accurate reading of the environment.

Each type of surveillance provides valuable information from different perspectives, enabling organisations to not only react to change, but to anticipate it. This ability to anticipate movements and transformations is crucial to maintaining a competitive advantage and thriving in a dynamic marketplace.