How Does Woolworth Use The Competitive Intelligence Cycle To Scan Their External Environment
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In order for Woolworths to form strategies and make strategic decisions, they need to scan their internal and external environment. By gathering this information, it allows them to understand where they currently are in the environment, what their capabilities are and how they can utilize these two elements by integrating them to achieve a sustainable, competitive advantage. As a result, they are able to sense environmental change and easily adapt their internal elements to suit the needed changed (Louw & Venter, 2010). This can be represented by the following framework :
We recommend that Woolworths use the competitive intelligence cycle to constantly scan their external environment. They will first plan, identify key intelligence topics, then actually collet, evaluate and analyse the data for their benefit. They need to analyse from all sources such as competitors and customers and may also be indirect like observing what the community needs.
Woolworths should dedicate considerable resources to this cycle and encourage everyone who works for them to be aware of and share this information, which has since been converted to knowledge, as a competitive tool to get ahead of competitors.
The internal data created by Woolworths needs to be converted to meaning and useful information for the strategic mangers to utilize in forming strategic plans. Woolworths will store all of this data in data warehouses and then mine this data to find patterns and