A strategic analysis of an enterprise software company

CRMCo is a software provider that had a clear and distinctive differentiated-value proposition. As the industry grew rapidly in the nineties, CRMCo sought to capitalize by evolving its differentiation to encompass new dimensions of value. The severe downturn following the technology bubble affected CRMCo’s financial position and caused it to start cutting costs. The strategic fit deteriorated, as cost pressures put CRMCo’s expanded differentiation strategy under increasing strain. The industry matured and consolidated to create dominant players, while software-as-a-service competitors and Microsoft also emerged as disruptive and growing threats. Now a business un it of a larger concern, CRMCo is trying to focus its internal capabilities on narrower vertical markets to address its strategic vulnerability. This paper assesses CRMCo’s evolving strategy by analyzing the industry and CRMCo’s internal capabilities. The goal is to identify a sustainable strategy for growth that increases strategic fit and aligns with market opportunities.