Change And Transition Strategies—After A Steep Market Decline

A personal inheritance usually means that something of special

value is coming your way—money, family property, heirloom

jewelry—precious collections.

A company's inheritance is its continued competitive

advantage in the marketplace. Preserving its value requires

adapting to the market as it changes. Yesterday's

strategies cannot deliver tomorrow's objectives.

When the market was growing, your business was able to grow with

it. In this business environment, market growth will not meet your

company's expectations. However, you do have the option to grow

by taking share from your competition. Is your company in a strong

enough position to do this? Can you withstand the onslaught of

competitors who are trying to take your share?

Market environments, like the one we are in now,

always cause changes in market dynamics. Your

company should be questioning the effectiveness of your

strategies:

Have changes in customers left you uncertain of their needs?

Different personnel are becoming involved in purchase

decisions

Brand strength has weakened and even specified purchases are

qualified with "or equivalent"

Customers are unwilling to pay for the same technical

support

Does evidence point to problems in your distribution

channels?

Sales volume has dropped and margins are being squeezed

Gaps are forming in coverage of large customer segments

Your company is losing importance as part of your

distributor's business

Competitors are achieving significant volumes through

non-traditional channels

Are escalating costs eating away at your profit margins?

Some marketing programs may be redundant or currently

ineffective

Is your channel price structure aligned to your goals of

increasing market share or reducing your overall distribution

costs?

As a manufacturer, it is highly likely that you are experiencing

these problems. How do we know that? Through Frank Lynn &

Associates' work as marketing consultants, we see that certain

dynamics are characteristic of all markets, regardless of the

products involved.

What Do Your Customers Really Want?

Customers are the driving force behind marketplace shifts. As

they focus on reducing their costs, they make process changes that

redefine their purchase expectations and needs. Often, they require

different types of support. Therefore, it is vital for your

business to periodically reexamine their needs.

As a manufacturer in a maturing market, you may be seeing

symptoms that your customer segments are changing:

Has The...