There are many interpretations to Sun Tzu's famous saying. To me, it's about knowing your enemies so that you have an edge when competing for business.

When I was running my own consulting business, I would always know what my clients were up to; what they were concerned about; and what their customers were up to but I always kept an eye on what my competitors. In particular, when we were competing for business I would make an effort to find out who I was up against as my strategy / tactics for the sale may have to change. For instance, when we were competing against a global player such as IBM or Infosys then I would emphasise my value proposition on our local capability, cultural fit, flexibility, value for money but if I was up against another local player, then our proposition changes and depending on who I would emphasise values such as experience from similar clients, size of our practice, or the depth of our skills, etc. They will vary depending on the competitors. 

The key here is to know your competitors so that when you are competing for business, you are well equipped for the battle.

If you have to compete for your business, then you need to ask yourselves the following questions:

- Who are your top competitors?

- What do you know about them? 

- What are their strengths and weaknesses?

- What do they specialise in? What are their Unique Selling Propositions (USP)?

- What do they typically charge?

- Do you have a strategy to compete with each of them?