There are many symptoms will indicate the strategic problems of a company. Some of these symptoms will have a great impact on the company's operation and future success. Examples of these symptoms are company slow to introduce new products and company does not have much product variety.
Some companies are so slow to introduce new products to the competitive market. The company exhibits this symptom shows that it is not competitive enough to survive in the industry, especially those companies involve in technological industries. Technology is changing so rapidly that most companies in technological industry are investing billions of money to develop new technologies. If the company is not able to introduce new product, it will lose its market share of the industry.
Another similar symptom that indicates a company contains some strategic problems is the company doesn't have much product variety compared to competition. The symptom indicates this company is not providing enough choices to its customers. Nowadays, the bargaining power of customers is increasing, if seller doesn't provide enough choices to customers, they can easily change to another seller.
It is hard for me to think of any company in current existing market that contains of these two symptoms. Companies contain these symptoms and still retain its market position are most likely to be the monopoly of the industry. Otherwise, companies consist of any of these symptoms are hard to survive in the market.
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Actually I can think of a technical company that is slow to introduce products in a competitive market. AOL Instant Messenger is an example. The company is lagging behind MySpace and Facebook and only now has started to make innovations to bring back the competitive advantage that the company once had. For more details about that, check out my blog on the same topic.
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