A small software company that develops and markets a niche business software application was looking for advice on how to grow sales.
Griffioen Consulting was hired to conduct comprehensive strategic planning to identify opportunities to grow by entering new markets, launching new products, and other ways to increase revenue.
The strategic planning project included a thorough review of the software product, customers, sales & marketing, and competitors.
It was quickly discovered that the firm was earning well more than 80% of its revenue from a niche market where they had a good reputation. The remainder of the revenue came from another market they had recently entered. This second market was not related to their core market, much more competitive, and with much smaller sales transactions. This second market could be considered a distraction from the core business. To make matters worse, this second market did not have significant upside potential.
Based on the principle that strategy is all about focus, management was advised to exit the second market and concentrate fully on the core business. By doing this, the entire organization and business processes could be fine-tuned to better serve their core market, leveraging and enhancing their reputation as a knowledgeable solutions provider.
The firm followed the strategic advice and abandoned the second market. Product development was able to focus on the specific needs of their core customers and sales and marketing could concentrate on a single market with a clear message and value proposition.
Recently, the software firm was acquired by another software firm.Back to Case Studies