Project Experience

Understanding Competitor's Core Competencies Provides Guidance on Future Actions Necessary To Compete Successfully

Client Situation
Our client, a leader in a highly competitive frozen products category, was developing its long-range strategic plan. Recent changes in strategic alliances among competitors in the industry prompted our client's interest in gaining a more in-depth look at key competitors' core competencies as a predictor of their future moves.

Fuld Approach
In speaking with plant managers, we were able to determine that capacity constraints would limit the competitor's ability to meet its volume objectives, hence result in disappointment to financial investors which would hinder access to future capital required for growth. Secondly, in speaking with distribution personnel, we learned that volume from a new product line launch would be insufficient to maximize the distribution network so new alliances would need to be pursued to leverage its distribution network to achieve cost economies.

Benefits and Implications
Understanding competitors' core competencies enables our client to determine actions its competitors are likely to take and consequently, provides guidance on actions it should take to achieve or sustain its competitive advantage. For more information, contact Michael Sandman at msandman@fuld.com.