A good example of this is the printing business. There is a strong cyclical component to the current troubles of many companies in this business-the slow economy has reduced the amount of marketing and advertising content needed by their customers. But there is something more at work as well: the quality and price of color printing machines has enabled companies to produce more and more material in-house. And, of course, electronic communication is a lot cheaper and can be much cheaper than printed marketing materials and standard mail campaigns. There are still many successful printing companies. But they are looking at the industry and their role in it in a new way.

In your own industry, dig deeper than just the economy. Read what others are saying. Try to identify several factors influencing the evolution of your market before you jump to conclusions. In change there is always opportunity-keep your eyes and ears open.

What's new with your competitors? Keeping an eye on your competition is easier than ever in the electronic age. Most companies put a good introduction on their website. But don't stop there. Think about other sources of competition, including the customer's internal staff.

A good example of this is the web design business. In a few short years, this great niche came under attack from many different players. The competitors in this market are now as diverse as packaged software on the low-end (so customers can do it themselves), portal software vendors on the high-end, advertising agencies on the creative side and business process offerings on the technical side. If you just look at other web designers, you will probably miss your biggest competitors.

In your own company, remember that most competitors look very different from your own company. Try to look beyond your own market segment and understand how different players may be entering with new, higher value skills.

How has your customers' business changed? For key customers and markets, it pays to understand what is important to them. Customer complaints and/or problems are the best third party view of your company you can get. Your inside sales and customer service staff are great sources of information on both your performance as well as the customers' business. Make sure everyone is listening, both to solve the problem but also learn from it.

We saw an important customer shift in the medical device market after the most recent U.S. Presidential election. Many companies in this market saw compliance enforcement by the FDA decrease significantly. Logically, compliance now has a much lower priority in a lot of companies. They have cut their legal, consulting and some quality assurance costs. Anyone marketing based on regulatory pressures has seen their customers move away from them.

In your own company. Remember that your clients' needs are ultimately what drive them to buy your product or services. If you don't stay up with their needs, your sales will probably suffer.

Charting your course

Once you understand where your market is, make sure your business offering matches your strengths with the opportunities in your market. Whether you sell a product or a service company, your company has distinct strengths and weaknesses. The best course for the company will exist at the intersection of market opportunity and your unique offering. Keeping your company at that intersection will get you through tough times and, even better, get you future success.

[an error occurred while processing this directive]