Competitive analysis is important for firms to understand how they compare to their competitors. This study looks at whether firms accurately know their competitors and if similar types of competitors know each other better. The researchers found that firms do indeed know their direct competitors well, especially those in the same type of business. This knowledge comes from interactions like industry associations, professional networks, and hiring employees from other firms. This understanding helps firms identify their strengths and weaknesses compared to their competitors, which is crucial for developing successful strategies.