Competitive Intelligence Research for a Multi-National Corporate
About the rubric: In series of publications we tell you more about diferent cases we worked on in our practice. The aim is to show the nature of our work, how we solved complicated issues and how we manage crises protecting the interests of our clients. We respect the privacy of those who trust us which is why we will not mention brands and names in tese publications.
A multi-national medical device company wanted to understand its key competitor's pricing and external funding sources, after learning that the competitor was selling a similar product at a significantly reduced price in several countries.
Using open sources and personal interviews, TERRA SS discovered that the competitor received vast sums in subsidies from several sources, including a European Union research and development programme and local scientific funds. The competitor also collaborated with local centres of excellence and universities that conducted R&D work for the company using government allocated funds. Total funding and savings amounted to over €50M, which gave the competitor the power to undercut market prices.
This understanding of the competitor's sources of funding, as well as the vitality of its pricing strategy, allowed our client to develop a plan to restructure its own R&D funding to generate major savings and improve its competitive position.