A FTSE 100 global consumer goods company had been competing with an established century-old competitor and was familiar with its market approach and strategies. However, when the competitor was acquired by private equity, we were consulted to analyze the new company’s position and predict how their market strategy and approach might change and affect our client.
We began our threat assessment via press reports and proprietary databases. We also concentrated heavily on financials, revealing sources of funding and access to capital. Our field investigations led to the town of the competitor’s head office, where we interviewed people associated with the company, along with customers and subject-matter experts from our client’s organization. Additionally, we toured facilities and marketplaces where both companies’ goods are sold. We then vetted our interviews by cross-checking and verifying the information to present key findings and recommendations to the client.
Extreme cost-cutting measures and aggressive operational management by the competitor were brought to light. These findings allowed us to project future behavior, which helped inform our client’s strategy in the coming year. Our client could now capitalize on specific growth markets 6 to 9 months ahead of its competitor, allowing our client to successfully maintain market share over the next 12 months. In addition to executing this plan ahead of its competition, our client now had strong balance sheets that made this acquisition a vehicle for further acquisitions.