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 How to compete when companies are faced with an
unavoidable and inevitable erosion of their market
The
change in market dynamics may be caused by intense
competition locally or abroad. Companies that have
successfully competed may suddenly find themselves
in a new competitive environment. When this occurs
they have several options, they can search for a
capital infusion, in order to create a new or
refined business model, change manufacturing
processes through off shoring or outsourcing, or
close operations altogether.
It
could be argued that each and every company will
face such a dilemma; it is not "if"--just "when".
This statement has been made evident as many of our
corporate darlings that have stood the test of time,
are currently struggling to stay alive in the
competitive landscape. America's beloved industries
- the airline industry, the automotive industries
are all under aggressive attack.
So
how does a middle market company continue to strive
or at least compete when they look around them to
find the customer's preferences have changed, the
supply chain has evolved through more efficient
means of production than the one that they currently
embrace or the demand has shifted entirely?
Middle market companies need to be strategic in
their thinking. Focus on ways to take advantage of
local markets first, creating a dominance and cash
flow to assist as they expand
regionally--nationally--internationally. Companies
often make the mistake of trying to expand before
they have created a solid footprint.
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