Strategic analysis of a software business

The goal of the software business analyzed in this paper is to grow revenue at an average annual rate in excess of 12% over the next five years, in a market with less than 10% annual growth, and increasingly intense competition. On its current path, it is not likely the focal business will achieve these goals. To do so, this analysis suggests the business should discontinue several nonprofitable products, divert the associated resources - and invest in additional resources - toward developing technology that will serve the attractive Manufacturing Execution Software for process industries market segment. In addition, the business should adopt a market (as opposed to sales or operations) orientation to improve customer satisfaction and penetration within served (and targeted) markets. Finally, the business should maximize the synergy among its portfolio of existing products to build a sustainable competitive advantage.