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This work evaluates FRIMESA’s CI system, one of the biggest companies in food production in Brazil. Frimesa market segment concentrates solely on small stores. Methodology supports the research methodology, baring an exploratory and descriptive case study method. Data were gathered through an interview with three directors. It also involves data from observation and assessing forma document of the company, which allowed for a data triangulation. Interviews were recorded and resulting data were analysed using the content analysis method. Main results show that Frimesa developed its business model betting on local small stores. These stores became Frimesa’s cognitive basis for their own consumer behavior market segment. Information on market consumer supported Frimesa’s price policies for that market, an efficient distribution strategy to that market and the production optimization. Local small stores work as intermediates of innovation to please consumers, allowing Frimesa in an advantageous position to compete with strong competitors. Main conclusions indicate that Frimesa’s CI system, not only became the responsible for the company’s business model, but also, bolsters the continuous and incremental innovation process in its business model, to keep the company at the desired market position

COMPETITIVE INTELLIGENCE AS BUSINESS PROCESS INNOVATION