COMPETITION in the electronics sector is so fierce - and the pace of change so rapid - that threequarters of the top 250 companies in 1985 have by now either slipped or disappeared from the list, a new survey shows.

The trend underscores the need for IDA Ireland to attract investment from firms currently successful, but also "the winners of tomorrow", the authors say.

Traditional, long term strategic planning concepts and approaches are ineffective because industry trends, technology and competitors shift too quickly and too randomly, the Andersen Consulting worldwide survey says.

Best performers - described a new strategic planning process that is based on "trigger point events", which enables rapid recovery from forecast errors.

This system has an 18 to 24 month horizon, rather than the traditional three to five years.

"Concentrated focus on a sole source of competitive advantage such as cost, technology and differentiation - is inadequate because competitors are too quick to replicate advantages," the survey says.

"Counter to the advice of traditional strategy experts, best performers seek multiple sources of competitive advantage."

Traditional, top down corporate structures are less effective, the document adds, with the most successful companies adopting a cooperative approach.

"High performers have almost three times the number of collaborative initiatives and are more likely to reach beyond traditional collaboration with customers and suppliers, seeking out complimentors and their competition as partners, the report says.

Mr Frank O'Dea, an associate partner with Andersen Consulting, says that, because Ireland now has more than 35,000 people working in the computer and electronics area, the survey bears particular relevance for here.

"With a number of the major companies surveyed located in Ireland, and 23 per cent of all greenfield investments in Europe based here, this report raises a number of important issues for Ireland," he says.

It is important that IDA Ireland continues to spread its risk across different technologies, he adds, and that the agency encourages "clustering" building a critical mass of companies in close proximity.

The next decade will see a convergence of software, hardware and telecommunications technologies, he adds, and it is crucial that Ireland assists collaborative ventures between leading companies in these areas.