Strategic planning is critical to a printing company's success in today's competitive business environment. Strategic planning helps printers to identify both the threats and the opportunities facing their businesses now and in the longer term, and to chart viable courses of action.
Several forces elevate the importance of strategic planning today.
First, a slowdown in industry growth, coupled with more productive machinery, has led to production capacity levels that outpace demand. At the same time, there's an imbalance in the purchasing power of printers in local markets, caused by consolidators buying companies to support a nationwide network of local facilities. Companies that are part of larger printing organizations now have a tremendous purchasing advantage over their local competitors in terms of equipment, paper, and supplies. Another factor pushing strategic planning to the fore as a competitive survival tool is the lightning-fast pace of technology development, enhancements, and obsolescence. It is only then that a company can formulate strategies to cope with or alter the conclusions uncovered.