Post by
AlwaysLong683 on Dec 07, 2021 11:52am
Possible Problems with MDF As It Stands Today....?
I understand CEO Luc Filiatreault sold off a number of Mediagrif segments shortly after he became CEO to provide the company with a more focused set of services, but the company is still in three distinct businesses: ecommerce, eprocurement, emarketplaces.
Apparently the emarketplace segment is not a priorty, so why not sell it?I think it may be because it still adds to the bottom line and thus is currently a net positive for the company, or perhaps they are not getting any decent offers for it, but I think it would be wise to exit this segment and get what you can for it, as it apparently does not fit MDF's future plans (perhaps because their offerings in the areas where they operate in this field are dated and, as a result, in decline.....?).
Also, a small company trying to compete in both the large-enterprise ecommerce business as well as the eprocurement space in the United States simultaneously is also likely very challenging. I know they have won business and grown in both areas, but again, it may be wise to pick the one they think will be the most lucrative going forward and sell the other to focus solely on one area and strive to be the best in that area. A sale of one of the two would provide a nice influx of cash that they can use to accelerate their remaining business and have one sole-focus into which they can put all their energy and resources
Another issue appears to be trying to attract high quality employees.
They are a Quebec-based company and there must be a lot of competition for the kinds of tech employees they need to implement their solutions. I notice they spend a lot of time trying to spread the word that they are hiring and all the benefits of working at MDF (I believe they even have a YouTube video trying to show how great it is to work there), but this could be taken one of two ways:
You could view it as a positive that they are growing and have the need for more employees to keep up with that growth,
or
You could view it as a company that has trouble attracting top talent in skill sets that are in high demand where people with those skills have lots of options re. where they work and may not be choosing MDF.
MDF has even taken the step of setting up and office in the Ukraine and hired a Ukrainian recruitment agency to try and fill needed positions, so maybe that strategy will pay off, but the bottom line is, if you don't have enough of the skilled employees you need, it will be more difficult in meeting contract deadlines re. new clients and/or providing fast, timely support to both new and existing clients.