Such a symptom can be very critical to a company's preservation, as unlike other symptoms, this one can be clearly visible to the consumers. These consumers, set in a shifting and unpredictable environment, are constantly looking for new, more efficient products. Therefore, a company that fails to provide its potential consumers what they are looking for, will find itself in a strategic problem in the future. When new products are introduced by a company, the consumer feels assured that the company is interested in the market and its willingness to provide a better product. Hence, a company that fails to do so, sends the opposite message to the market, and primarily to its consumers.
Too much debt:
Although debt can be a major source of money, companies must know how to manage their debt in a way that won’t harm them in the future. Too much debt can cause damage if it doesn’t repay itself faster than it grows. This debt will undoubtedly grow into a strategic problem as it will prevent the company from self developing, as well as improving future progress to its consumers. Furthermore, excess debt can prevent the development of much needed new products, and consequently dissatisfy a customer's needs. This can be clearly proven with any number of companies, even the New York City MTA.
The N.Y.C – MTA has suffered for several years from a large budget gap which will lead to a projected deficit of $1.46* billion in 2009 (*New York Times). As a daily commuter, I can see and feel this strategic problem in several ways. First of all, many of NYC subway station are filthy and not well maintained due to lack of financial resources. Second, the recent hike in fares has dragged many consumer complaints. And third, the delayed completion of the