[solved] Closely monitoring the strategies and situations of key rivals and trying to prepare for the actions they are likely to take

avoids the mistake of flying blind into competitive battle without having some inkling of what actions rivals may take, thereby reducing the risk of being caught napping and suffering a damaging loss of sales and profits.

makes it easy to predict which rivals are likely to gain market share in the upcoming years and which ones are likely to lose market share.

helps clarify which rivals are the firm's closest competitors and how to capitalize on their strategy flaws or mistakes.

helps company managers identify which rival has the best strategy and must be watched most closely.

is important because it enables company managers to identify which rivals are in the best and worst strategic groups.