The Battle for the Customer. (IT News).

Plimsoll Publishing

Well over a third of the industry will suffer casualties in "The Battle for the Customer," according to the latest Plimsoll Analysis on the UK Computer Software industry. Drawing up a special "Battle Plans" Edition, Plimsoll found a record number of companies showing declining sales and losing money.

Likening company directors to generals of their own army, Plimsoll analysed the top 2000 companies in the UK Computer Software industry to produce "battle plans" each company will use to prosper. They found 816 companies need to retreat in order to survive, 614 should hold their position and the 617 need to force home their current advantages. This special edition shows how each of these companies will carry out these tactics.

"Every general of an army must preserve the life of the troops by recognising the signs of strategic advantage and exploiting their enemies' weaknesses. If companies are vulnerable then they must retreat and re-group so they can fight another day. It seems the Computer Software industry is waging a war," says Plimsoll.

The walking wounded are the 816 companies Plimsoll feels should retreat and re- group. These companies would greatly benefit by strengthening their strategy in 3 key measures. Cutting back on all non-profit making parts of the business is primary. Debt levels should be greatly reduced. In any battle there are casualties, and in this case, 36% of the workforce would have to go.

The analysis suggests that fundamentally many of these businesses could have a great future if costs could be controlled. Plimsoll found that if costs were brought in line, margins would rise from an average loss of 14.6% on sales to an average 1.8% profit margin. Unless these 816 companies move quickly, 617 companies are set to win the battle. These companies have edged into a winning position and have yet to recognise how good an advantage they have. Their strengths speak for themselves yet their biggest threat is sitting back and doing nothing,

Performing far above the industry norms, here are just a few of the outstanding figures that set these 617 winning companies apart from the rest.

* 49 companies managed to grow last year on average at 21%

* 196 companies made a 49% pre-tax margin on sales

* 145 companies made a 29% return on investment

* 252 companies increased their work force by 10% or more last year Plimsoll's UK 'Computer Software-Battle Plans' Special Edition reveals the tactics each of the 2000 companies will use in the battle. To order this special edition for [pounds sterling] 325, ring Plimsoll on 01 642 62,6400.

www.plimsoll.co.uk

Readers of this publication wilt receive a 5% discount if mentioning this article upon ordering.