New Product Introduction

Priiva worked with the senior management of a large multinational manufacturer who was considering a geographic expansion and product line extension into an adjacent market. Initially, the client considered entering the adjacent market through an alliance with a selected competitor.

The Priiva process was used to determine the likely responses to that market entry strategy by the client's customers, regulators, and competitors. In this case, the analysis showed that market entry with the chosen alliance partner would cause other players to expand capacity unilaterally and would severely damage market profitability. The analysis also showed that a better long-term strategy was for the client to partner with the market leader, rather than with the competitor they had initially targeted.

By implementing the strategy recommended by Priiva, this client was able to accurately predict limited expansionary moves from competitors. This in turn allowed them both to limit market over-capacity and solidify their competitive position in the market.
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