Why Do Corporations Involve in Industrial Espionage?

Espionage (spying) has been employed as a battle tactic (both during wars and even in peace times) for years but it is only recent that business rivals have started to get involved in industrial espionage more actively. Stakes are getting high and corporations are desperate to get hold of the biggest market share. They are ready to do it by hook or by crook, even if it involves stealing your rival's trade secrets. There are different levels of "evil" attached to industrial espionage. For example a guy who is looking to launch a particular business. He may start working in a company just for the sake of getting familiar with the industry and to gain some experience. That doesn't sound really unethical, however when some companies steal formulas or technology that was acquired after years of research and extensive spending, it becomes significantly malevolence.

You must have heard about the formula of a soft drink which is a closely kept secret, or the secret recipe of Krispy Kreme Doughnuts, similarly many other famous fast food chains claim to have some secret recipes. However, trade secrets are not limited to food recipes, all types of industries have some trade secrets including information technology, automobiles or even fashion industry. This theft of information is not limited to product manufacturing, as businesses try to steal other information like some search report or marketing ideas. For some businesses it is the trade secret that guarantees their survival and growth, take the example of Google's ranking algorithm (which is probably the most sought after formula in the cyber world).

Industrial espionage has been carried out in different manners. In its early days, corporate espionage was restricted to entice or bribe some employees to give away the information, or to try and get your own workers appointed in the rival company, in order to obtain some confidential information. However the advancement in technology has introduced mediums like spy ware or voice recording devices. Such espionage attacks are so common that many large companies have separate department and setups to safeguard against such malicious attacks. In some instances, entire nations were accused of getting involved in this nefarious activity. Sometimes these allegations are real. On the other hand some businesses may purposely publicize having a secret formula or recipes (normally the food businesses) because it makes their product sounds like an "out of the ordinary" item, while in reality it is just a run of the mill product.

William King is the director of China Wholesale Suppliers and Canadian Wholesalers. He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.