Strategic Change to Improve Margins

In the context of company analysis within the equity investments landscape, analysts often employ various frameworks to assess a firm's competitive position. Company ABC operates in a highly competitive sector with fluctuating demand and significant price competition. Recently, it has faced declining margins while its key competitor, Company XYZ, has successfully implemented cost-cutting measures leading to improved profitability.

Considering this scenario, which of the following strategic changes would likely be deemed the most effective for Company ABC to regain its competitive edge?