Industry – Water
Territory – Latin America
Client – Global manufacturer of water equipment
Case – The client’s subsidiary in Latin America entered into financial difficulties due to loss of market share and substantial decline in revenues, caused by unfair competition acts committed by its main competitor. The competitor used an aggressive marketing plan based on the client subsidiary’s trade secrets and IP that were embezzled by past employee. The client assigned A. Yakim to construct and implement a turnaround program that would eliminate unfair competition acts, regain market share and stabilize the financial position. Â
Actions –
- We conducted an in-depth fraud examination into unfair competition events, embezzlement of trade secrets and IP.
- Solid evidence were systematically gathered and later used to initiate criminal complaints filed with the authorities and civil procedures against the competitor and its executives.
- New procedures were designed and implemented at the client’s subsidiaries in order to prevent future attempts to embezzle trade secrets and IP.
- We utilized market research and advanced competitive intelligence tools to define market strengths and weaknesses. Accordingly, a new marketing and sales strategy was established.
- New logistics center and local offices were opened close to main markets.
- Employee incentive structure was aligned with new marketing targets.
- Cost saving activities and cost control planning, improved the cash flow position.
Outcome –
- Criminal investigations conducted by the authorities and civil lawsuits eliminated acts of unfair competition.
- The competitor was forced to abandon its aggressive marketing strategy and illegal activities and shifted to a defensive mode.
- The subsidiary overcame its financial difficulties, regained its lost market share and strengthens its presence in the market.