Creating a suitable strategy for innovation when the industry is frequently changing: The importance of competitive intelligence

Abstract: Developing a suitable strategy for innovation can be a challenge, and especially if the industry is constantly changing. It is important for firms to be aware of the external environment to be able to create competitive strategies. The knowledge about how to perform competitive intelligences is essential for managers. It is their job to analyze and take the external factors into consideration when creating unique strategies for the company. The choice of strategy will affect the focus within the firm, resulting in that an analysis of the environment is essential before establishing the strategy. Managers must also build the right organizational structure, to be able to accomplish the goals and objectives. It has been proven that an entrepreneurial culture is profitable for companies and it is therefore important for managers to create strategies where this way of work can be applied. Building alliances can also result in better understanding for the industry and can give better insight in how to handle a changing environment. Keywords: competitive intelligence, competitive strategies, strategies, innovation, management