Project Experience

Manufacturing…New Product Rumors Aren't Always Based on Fact

Client Situation
In highly competitive sectors of manufacturing, such as medical manufacturing, rumors of new product developments are not uncommon. A closer look at a competitor's functions can reveal whether there is any substance to a rumor. In one instance, a client heard that its primary competitor might be developing a new product that would revolutionize the industry.

Fuld Approach
By reviewing the research and development activities and hiring patterns of the relevant department, as well as state and city records, we were able to learn that no new equipment had been purchased and no new technical personnel with an expertise in the specific area of development had been hired. These were keys to uncovering truth to the rumor. Further investigation revealed government cooperative research and development agreements in areas other than the product rumor area however the development gains could be leveraged to produce a new product in the area we research in the future. This, along with other evidence we uncovered, led us to believe that the rumor was just that, however, we advised our client to be on the look out for further developments in other areas where the technology could be leveraged later on.

Benefits and Implications
Our research not only dispelled the hearsay, but also gave our client insight into ongoing product development in a totally different area. More often than not, companies focus on the product or market that is the obvious threat when, if fact, there are areas that can be leveraged which appear, at first glance to have no relationship what so ever. Fuld & Company has aided clients in understanding these "not so obvious" areas in several industries. For more information on substantiating rumors in manufacturing and related marketing, contactnbulger@fuld.com.