Strategic Planning – Review of 2009

Well, here we are in December. As always it is an opportunity to review our performance over the past year as well as make adjustments and plans for next year. 

The Great Recession

It has been a challenging year for most of us, so I thought I’d offer a little humor. During my 20 year career at National Instruments, our business mostly looked like this. That was until year year – and the Great Recession.

After several years of steady growth in our revenue, we began to see the effects of the Great Recession in the 4th quarter of 2008. This trend continued into 2009. And, although the decline has stopped, our business is significantly down from where it was a year ago.

Impact on our Partner Business

Unfortunately, this trend has also adversely affected our Alliance/VAR business. For the past several years, we not only growing revenue, but actually increased it as a percentage of our business.  But, as the recession took it’s toll, particularly on our larger system-level business which is commonly channeled by our partners, we’ve seen an adverse affect on our partner business.

OK, enough bad news. Next week we’ll talk about the chances of an economic recovery and what that will mean for NI and our partner business.

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3 Responses to Strategic Planning – Review of 2009

  1. We’ve to keep in mind that we’re the survivors!

    This vision give us the expectation that a well maded business plan could carry us out from the “Great Recession”.

    Reading again your Part 3 regarding the “Five Forces” …we could write:

    1. Your buyers –…new buyers with the clear vision that the innovation is the solution!

    2. Your suppliers –…now with the clear idea that we’re a great resource (You can appreciate something only if you lose them)

    3. Your competitors –…less but much more aggressive….

    4. Substitutes –…see the point 3….

    5. Barriers – …know-how and innovation…only who have invested during the “Recession” can now use it!

    ….I’ll wait for your new post….

    Fabio D’Aniello
    RobotroniX S.r.l.

  2. Jack Barber says:

    Yes, that which does not kill us makes us stronger! As I will discuss more in my next post, there are reasons to be optomistic. For instance, NI (your supplier) has been able to continue to invest in innovative technologies and create new products that will attract new customers (your buyers)in put us in a better market position (than our competitors).Our graphical system design approach does offer a ‘substitute’ to traditional solutions. Even ‘barriers’ such as the ability to do it themselve may have been reduced – as they may no longer have the staff.
    I remain confident in the long-term of NI’s business and our partner business, in particular.

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