UK firm JBA Holdings has pulled out of the high-end enterprise resource planning market and slashed staff numbers in a bid to return to profitability.
The developer has been battling falling sales and profits for the past two years and for 1998 it posted a pre-tax loss of £1.7 million on sales of £293 million.
JBA invested heavily in the high-end ERP software market earlier this decade but was unable to compete with higher profile heavyweights, such as SAP and PeopleSoft.
Last week the company announced it had cut its worldwide workforce by at least 8%, down to 2,700, and will now refocus on mid-market customers in the apparel and footwear, food and drink, automotive components and electronics sectors.
These sectors currently account for 60% of JBA's business. The company hopes to grow this figure to 80% within three years.
The cutbacks and refocusing are expected to reduce annual costs by £5 million, but JBA may not enjoy a much easier ride in the mid-range.
The market is fiercely contested by dozens of financial software developers and is also being targeted by top-end vendors like SAP, as multimillion-pound deals dry up.
Analyst Mike Thompson, of the Butler Group, said limiting its focus is likely to be a wise strategy for JBA.
"It would seem that (the high-end) part of the market is quite tightly controlled by SAP, JD Edwards, Peoplesoft and Baan. JBA has been caught a little - it can't compete at the top level and going mid-market seems like a good move," he said.
"Verticalisation is nearly always a good move if you can bring specific templates and expertise. Although it limits your market, it does give you a better chance," he added.
Thompson said the ERP market is likely to consolidate, with big players seeking to expand by buying up their smaller struggling rivals.
"Like everything else, the large players will get larger," he said.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago