Final answer:
Competitive intelligence helps a company understand when to launch products, predict market share, set pricing strategies, and identify their target audience, leading to enhanced business success and innovation.
Step-by-step explanation:
Good competitive intelligence regarding the strategic direction and likely moves of key competitors enables a company to make informed decisions that can lead to business success. Understanding the competitive landscape aids in determining the optimal product launch timing, predicting potential market share acquisition, developing effective pricing strategies, and identifying the precise target audience. Market competition incentivizes innovation, as companies strive to produce more cost-effective products or introduce features that meet consumer demands, often leading to a temporary advantage over competitors and the potential for higher profits. For instance, technology companies like Samsung emphasize persistent innovation to maintain a competitive edge, as expressed by their CEO, Gregory Lee. To truly excel, a firm must not only innovate but also be vigilant about the evolving market dynamics and the possibility of new entrants seeking to capitalize on their success.