It has been a tough quarter for most businesses and perhaps, the toughest in a very long time. The good thing is we are now kind of prepared for the worst. So many companies have clamped a freeze on capital expenditure. In some ways that could also be self-defeating.
How did everything change so drastically for some of the top companies of the industry that they had to announce massive layoffs as well as roll back some plans? Is recession a convenient excuse to get rid of excess baggage? Were all of those layoffs seen necessitated by extraneous factors?
Did some bad practises creep in? We have seen many of the large companies going on an acquisition spree and spreading too thin. And in the aftermath of the slowdown, there wasn’t much to fall back on for some of the industry titans. There was no plan ‘B’. In the span of less than a month, they decided on rollback and retrenchment plans as a quick fix solution. And we are still only at the beginning of a tough ride.
In effect, it is an uphill battle for businesses and consumers. But companies cannot simply stop doing business. They could perhaps learn a few lessons from the fallout. Opportunities and customers willing to spend would be fewer. They need to be pursued diligently.
Obviously some sectors are likely to be more affected than others. Narrow down on those more probable opportunities. Look at adding complementary solutions or work with other fellow-VARs who can provide other building blocks of a solution. Also look at the opportunities to foster stronger relationships with the CIOs or IT managers from different verticals who would make the eventual purchasing decisions.
Lead generation needs to be a frontal activity for VARs and they need the complete support of the vendors in executing this through web access and other means. Sales pitches need to confront competitor proposals with more informed and precise analysis. This requires information tools gathered from reliable sources.
Staying informed on technologies and industry trends and networking with end user communities is a way to sustain a competitive edge. It may also guarantee that you ride out the slowdown more easily and are ready for the upswing when it happens.
There is a need to rethink strategies and business plans as well as introduce new b Best practises