Which outcome is achieved through effective competitive intelligence?

Prepare for the Global Strategy Exam. Use flashcards and multiple choice questions, complete with hints and detailed explanations. Master the material and excel on your test!

Effective competitive intelligence is crucial in developing a robust understanding of the competitive landscape in which a business operates. Achieving the ability to anticipate rivals’ strategic moves is a key outcome of this process. By systematically gathering and analyzing information regarding competitors’ actions, strengths, weaknesses, strategies, and potential future directions, organizations can position themselves more strategically in the marketplace.

This capability allows businesses to prepare for and respond to competitors' actions proactively, which can lead to maintaining or gaining competitive advantage. For instance, if a company can predict that a rival will launch a new product, it can strategize around that launch, perhaps by enhancing its own offerings or ramping up marketing efforts in anticipation.

The other options, while valuable in their own right, do not capture the primary aim of competitive intelligence as effectively. Rearranging product lines and understanding customer preferences stem more from internal analysis and market research rather than from insights specifically about competitors. Forecasting stock market performance is related to financial analytics and investor relations rather than strategic competitive analysis. Thus, the ability to anticipate rivals' strategic moves is distinctly aligned with the core purpose of competitive intelligence.

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