How can the MBA theory of the product life cycle help you with online sales in your small business?
The other day I was talking to an entrepreneur who sold her products on eBay and Amazon. Your business is doing well, but you really would like to get to $ 10,000 per month in sales without taking too long as you believe in multiple sources of income and you want to expand those other business models as well. My suggestion was to introduce new products constantly, but on a strategically scheduled time. Okay, let’s talk about this.
Have you ever looked at a product life cycle chart in a business textbook? Well if so, what you saw were the traditional ‘product life cycle’ teachings taught in MBA school, retail marketing, and marketing classes. Still, we can take this concept and use it for online sales and new product programming, please consider this concept.
Now imagine the ‘mound curve’ and when you start at your steepest point, it’s a good time to introduce a new product and get started because eventually the first product will stabilize. If done correctly, the new product will start to go hyperbolic and analyze the peak of the life cycle of the first product. If you want to stay hyperbolic, you must continue to present products this way, which is something companies like Proctor and Gamble and GE are trying to do.
An especially interesting case study would be INTEL and Apple, as they try to stay in the sweet high-profit zone, it does wonders for their share price. If you have a great product that is actually cooking, but has a shorter life cycle (examples: cell phones, chips, and maybe a social media plugin or new features), then you can keep the price high and go for the former. in adopting ‘technology or companies that buy their products so that they can stay ahead in the case of AMD or INTEL.
By looking at that concept, you can see that that concept works for someone who sells many different products online. Maybe you can tell when you have a fast moving meteor product but it will sell out, so you launch your new product when your sales are running low, because they will soon sell out and you don’t want your monthly sales. to the tank, and leave you in a cash flow crisis. See that point from a strategic point of view.
I think you can use some mathematical formulas to solve this, and I imagine someday some Oracle or SAP software connected to a corporate digital nervous system (Bill Gates book; reference “The Road Ahead”) where an artificial intelligent system that tracks all points of sale and sales, real-time inventory will be able to do this with 90% accuracy, giving executives the information they need to plan and strategize for capex, innovation exploits, and cash flow. cash. But you can do it using the same math, since your small business is not that complicated; yet.
Best of all, you can divide your business into components and product categories and then you will have a big picture of what you are doing and chart an EXACATTACKILY course where you want to go; Where will you go! Think about it.