VI Group Specializes to Survive

Computergram International, Sept 1, 1999

VI Group Plc, the UK-based company, believes the way to prosper in CAD/CAM software is to focus on a particular sector of the market. So the company, formed as a spin-out from the Olivetti empire, offers a mid-market, Windows-compatible package aimed at mold and die makers, and claims that this will enable it to boost market share in both new and established territories.

The company has been able to haul itself back into the black with net profit of 74,000 pounds ($118,918) in the six months to June 30, up from a loss of 28,000 pounds ($44,916) on revenue that climbed 20.4% to 2.2m pounds ($3.5m).

However, a narrow focus on a sector will mean that VI Group depends on the prosperity of notoriously cyclical manufacturing industry. Japan, which accounts for around 15% of sales has bounced back from the economic crisis levels of last year and enabled sales in Asia to climb 139%. Europe showed only a 9% rise in revenue.