CSC is facing a certain kind of decline and the company is selling its facilities to gain some revenue. The company is selling one of its units in Australia, Paxus, to Adcorp a service company (South Africa).1
It is possible to note that one of the major issues CSC is facing now is emergence of new competitors.2 Many new businesses are entering the market (including quite large corporations that were not the company’s competitors previously, e.g. Microsoft, Amazon, etc.).
The company has to come up with new strategies to overcome one of the most burning issues, i.e. significant competition. Notably, competition is an inevitable part of the business world.
However, it is quite a serious issue for CSC. Competitors offer more services at lower prices and many of the company’s clients cease to work with CSC. This issue has another impact. The company can lose many professionals as they can be offered higher salaries
One of the major causes of the serious issue is that the company has long used a strategy of avoidance. CSC has tended to avoid competition by moving to other niches.3 Therefore, the company has no experience in operating in a competitive environment. The company has not worked out specific strategies to keep clients loyal to the company.
The company’s attitude towards human resources development is also quite hazardous as they tend to invest in development of few professionals who have already made a considerable contribution.4 This can make many employees less motivated to work for the company. These employees can leave CSC and started working for competitors.
Some claim that the company can focus on providing services to vertical industries and “move away from the commodity market”.5 It can help the company meet short-term goals as this will help them to find their clients in other niches.
However, this solution can be quite hazardous in terms of long-term goals. Leaving some niches in the market, the company will lose its clients. Besides, when the company enters new niches, it will face competition there, sooner or later. The company may end up losing all possible niches in the market.
A better solution is to change the very strategy of the company that focused on niches where competition was low. The company should focus on development of new strategies to remain competitive in the changing environment.6
This will help CSC remain in the market as well as keep its customers and/or gain new clients, which is the major goal of any company. This will also help the company be focused on further development, rather than looking for other niches and possible ways to escape from competition.
With this major goal in mind, the company can make certain steps to pursue the aim. CSC should continue developing relations with existing clients. The major advantage of the company is its being a global and diversified business. CSC has already developed a reputation of a reliable company. Therefore, it is important to emphasize these advantages.
Bibliography
“Computer Sciences Corporation: CSC Agrees to Sell Australian IT Staffing Unit.” 4-traders, 2012. Web
Horton, Michael. Interview, Business Capstone Interviews, 2011. Web.
Schermerhorn, John R., Paul Davidson, David Poole, Alan Simon, Peter Woods, So Ling Chau. Management Foundations and Applications. Milton: John Wiley & Sons, 2012.
Footnotes
- “Computer Sciences Corporation: CSC Agrees to Sell Australian IT Staffing Unit,” 4-traders, 2012.
- Michael Horton, Interview, Business Capstone Interviews, 2011.
- Ibid.
- Michael Horton, Interview, Business Capstone Interviews, 2011.
- Ibid.
- John R. Schermerhorn, Paul Davidson, David Poole, Alan Simon, Peter Woods, So Ling Chau, Management Foundations and Applications (Milton: John Wiley & Sons, 2012), 14.