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2003 Strategy

by msecadm4921

The kind of year your company will have in 2003 will be defined by how successful a strategy you chose, according to financial analysts Plimsoll Publishing.

In their new UK CCTV Industry Analysis – First Edition 2003. Plimsoll has revealed four types of companies and the strategies that would best suit them individually in the year ahead.

1) For 34 (25.6pc) companies success will be mere survival:
Recent years have seen these companies deteriorate. Levels of debt are dangerously high at 24.1pc of sales. They are also suffering from declining sales with a fall of 9pc last year.

2003 Success Strategy for Survival: Consolidate to reduce debts by cutting costs and people. It is essential to return to profitability. The only other option is to consider being acquired by a stronger company.

2) For 18 (13.5pc) companies success will be to improve margins. These companies are exceptional in their ability to take large market share increasing sales by 73.9pc on average last year. Yet woeful margins and high debts have left these companies with very little to show for their success.

2003 Success Strategy for Improving Margins: These companies must slow down on sales growth to allow margins to improve from a current average of minus 1pc to at least a 2.7pc% margin in 2003. These companies will need to consider costs more carefully to stay competitive. 3) For 57 (42.9pc) companies success will be to get back into the market Market performance in recent years for these companies has been poor, sales rising only 4pc last year. Although focused on profits, these companies need to get back in the game for long-term staying power.

2003 Success Strategy for Gaining Market: These companies need to stop playing it safe. To compete these companies need to attain to at least the industry growth average. This may mean spending some of their 3.9% average margins now to expand in the future.

4) For 24 (18pc) companies success will be to maintain high performance These companies are every business owner’s dream. Leading the industry, these companies are winning on all fronts with a strong balance sheet, 40.9pc average sales growth and 7.3pc average margins.

2003 Success Strategy for Maintaining High Performance: Perhaps the most challenging strategy of them all is to try to stay in a winning position. Try going on the acquisition trail while you have the cash to spend. It is essential these companies do not get complacent and allow the industry to catch up.

The just published Plimsoll Analysis: CCTV, containing an analysis of 379 companies. To order for œ305, including a Success Strategy Pack 2003, telephone 01642 626400. Visit www.plimsoll.co.uk. Readers of this will receive a five per cent discount if mentioning this article upon ordering.

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