Project Experience

Rationale Behind Competitor's Senior Management Changes Directs Food Company How to Compete in Short Term

Client Situation
Our client, a leader in a highly competitive food category, had previously formulated its strategy on the basis of limited knowledge of its competitors. The No. 3 player in the market initiated a price change. The other players in the market followed suit. A change in senior management of the No. 3 player (eighteen months later) raised questions about the effectiveness of that company's brand strategy and whether a new strategy would be implemented.

Fuld Approach
In speaking with senior marketing and strategic planning personnel at the competitor's organization as well as stock analysts, we learned that there was no dissatisfaction with the performance of the person who left or the strategy he implemented. In fact, industry analysts and senior personnel were pleased with the results of the strategy.

Benefits and Implications
Our client learned that the competitor's current strategy would be continued (at lease in the short term) despite the change in management. This insight helped our client determine how best to compete at least in the short term.

For more information, contact Michael Sandman at msandman@fuld.com.