Conducting a competitor analysis most likely enables firms to ________.

A) construct appropriate strategies
B) develop tactical budgets
C) assess customer needs
D) determine new trends

Conducting a competitor analysis helps firms to analyze the strengths and weaknesses of their competitors, identify their market position and customer base, and determine the key success factors in the industry. These inputs are very useful in constructing appropriate strategies to gain a competitive advantage. Competitor analysis may indirectly help in assessing customer needs and determining new trends, but that is not the primary objective. Tactical budgets are usually not directly affected by competitor analysis.