Agarwal Movers AndPackers Pune
What Mix of products or services should you offer ?
Uncertain demand is challenge all businesses face and is in most cases their major source of risk . One way to reduce that risk is to make changes to your company ,s mix of products or services. In finance , if you have two portfolios offering a 20% return , you choose the less risky one , because it will create more value over time . The same is true with product portfolios.
Companies looking to recalibrate their product or service mix have essentially three option :
Focus Narrowly. In october 2010 Bloomberg Businessweek ran a cover story with the sensationalist title (What Amazon Fears Most) The article profiled Quidsi , a relatively small new jersey - based internet start- up cofounded by Marc Lore ( a former student of ours) and best known for its main venture , the online retailer Diapers.com
Diapers would appear to be a terrible product to sell on the internet . They are bulky and expensive to ship , and they have low margins because everyoneform convenience stores to costco-sells them . But diapers have one thing going for them :Demand is highly predicatable - birthrates are stable , and infants pee and poop constantly over an extended period of time. Also, product variety is limited , because there are only three or four major diaper manufactures, and diapers comes in just a few sizes. Given that every newly acquired customer will use the product repeatedly for two years or more , the company can count on a steady revenue stream with little or no risk for a long time to come.
Focused business models are most effective when they appeal to distinct market segment with clearly differentiated need. So if your business currently serves multiple segment , it may be best to subdivide into focused units rather than try to apply one model . Amazon,which bought both quidsi and the online shoe and apparel retailer zappos , allows its focused acquisitions considerable autonomy in serving thier segment .
The main drawback for a focused business is that it must rely on a single product , service, or customer segment - and it may omit key customer needs . People buy both butter and bread.
Agarwal Movers And Packers Pune
https://agarwalmoverspackerswakadpune.blogspot.com/2019/03/agarwal-movers-and-packers-kharadi-pune.html
Comments
Post a Comment