Mid-Market Companies: Competition is More Intense Than Last Year | AccountingWEB

Mid-Market Companies: Competition is More Intense Than Last Year

From competition within the middle market to vying with larger competitors and new companies entering the market, middle-market business leaders are feeling the pinch of a heightened competitive environment, according to findings from the Grant Thornton Survey of Middle-Market Business Leaders.

Ninety-four percent cite competition as more intense or as intense as one year ago, while just 6 percent say the competitive environment is less intense.

"As the market has tightened, so, too, have the competitive pressures on middle-market companies," says John Desmond, partner in charge of the Business Leaders Council. "Companies, especially those in the middle market, are not only fighting for new business – often at lower margins – but many are also looking for new ways to keep the customers they have from taking their business to the competition."

Additional highlights from the survey include:

  • Survey respondents cited a greater focus on price (89 percent), more knowledgeable customers (82 percent), and less client loyalty (81 percent) as the top business issues related to competition.
  • Two-thirds (74 percent) of middle-market business leaders believe it is more important today for employees to understand what needs to be done for the company to succeed.
  • To enhance employee alignment and motivation, 82 percent are focusing on consistent communications and 81 percent are establishing realistic expectations for employee performance.
  • Fifty-two percent of respondents are taking immediate steps to better allocate resources by deselection – focusing exclusively on initiatives that will be most profitable.
  • In preparation for an improved business climate, 84 percent of middle-market business leaders have — or plan to — invest in new technology (58 percent and 26 percent, respectively).

The Summer 2003 Survey of Middle-Market Business Leaders, with a special emphasis on how companies are positioning for an improved economy, is available from Grant Thornton.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.