Market orientation recognizes the importance of understanding competition as well as the customer the key questions are which competitors, and what technologies, and whether target customers perceive them as alternate satisfied. Superior value requires that^ fee seller sac, buy and Understand the principal competitors' short-term strengths and weaknesses and long-term capabilities and strategies.

Failure to identify and respond to competitive threats can create serious consequences for a company. - For example, Western Union failed to define its competitive area as telecommunications, concentrating instead on its telegraph services, and eventually was outflanked by fax technology.

Had Western Union been a market-oriented company its management might have better understood the changes taking place, seen the competitive threat, and developed strategies to counter the threat.

What is Competitive Intelligence?