On Strategy: Responding to Slow Growth in Technology Companies
Copyright Jack Mixner 714 449 1040 www.mixnerstrategy.com
Growth is a given in much of the planning taking place in tech businesses across the country.
What if the reality doesn't match the plan?
Tam et al chart the share performance of three "high-flyers" (Dell Microsoft, Oracle and Cisco) since 2001. None of them have recovered from the bust. All are making management changes. What if Oracle's Ellison is right in saying that the tech industry "is as large as it's going to be" (Tam, page A1)? How does that effect your planning?
Suggestions include
- competing aggressively for market share,
- restructuring and
- improving the customer experience (Tam, page A9).
Strategic Implications
Middle market companies need to re-evaluate their plans for growth to make sure they reflect market realities. If plans call for growth, are they aggressive enough to grow share in a slowing - or down - market?
Using Godin terms, is your product "remarkable" enough to make an impact in the market? If not, take what profits you have and reinvest them in something new.
The first step? A plan.
The analysis? Look very closely at present - and future - market share.
Actions? Analyze, then don't wait around to harvest - or invest.
References
Tam, Pui-Wing, Robert A. Guth and Christopher Lawton. Once Highflying Tech Industry Reboots for Era of Slower Growth. Wall Street Journal. Juy 27, 2006. Page A1.
Godin, Seth. Purple Cow Transform Your Business By Being Remarkable. Portfolio. 2003.