The purpose of this research is to prepare a position paper for use in the development of a diagnostic program, and in the development of problem solutions for Communications Technologies, Inc. (CTI). CTI, the market leader, has been losing market share for approximately two years. There is also concern at the company about the time span involved in the con version of technological developments into marketable products. Lastly, the company, for the first time, has experienced prob lems in attracting quality university trained recruits.
The telecommunications industry is suffering through a period of weak demand and excess capacity (Martorana, 1990). Unfortunately, this situation is expected to prevail through the mid 1990s (Martorana, 1990). The loss of market share by CTI, thus, is even more serious than it would be in either a growing or a stable demand environment.
The market leaders in telecommunications have often waited for promising product markets to be established by smaller, entrepreneurial firms (Martorana, 1990). The market leaders then step in with superior production economies, and dominate the new product markets (Martorana, 1990). Within an 1
2environment characterized by weak demand and over capacity, such a strategy is not effective for the market leaders. Rather, they must expedite the conversion of their own technol ogical developments into marketable products.
The difficulties experienced by CTI in attracting new quality recruits appears to be attributable to remarks by the company chair with respect to a probable reorganization in which several layers of middle management will be eliminated. The trend toward flatter hierarchical organizations is strong, will likely continue, and is necessary for the transforming industrial environment. Rather than change reorganization plans, CTI must persuade potential recruits that the company will continue to offer outstanding career opportunities.
On...