Classic Mistakes Companies Have Made
How does something so good end up so bad?
Most corporations don't realize it, but business has claimed many victims that have built their corporation around one core product or product-line. Although the product may be doing well and there are no signs of slowing down, there are other causes that can dramatically impact a corporation to the point of extinction.
If we all stop and think for a moment, we're sure we can name some popular products that are not around anymore and neither is the corporation. There are several reasons that can cause this to happen and below are just a few that you may or may not be aware of:
Issues that may cripple a one core product or product-line company:
- A totally new product displaces their industry (hook and loop velcro vs. the zipper).
- A recall is issued due to safety or faulty product problems.
- Lawsuits that may arise from point # 2.
- Their current vendors have ceased shipping components vital to the product and they are not able to find a replacement.
- The government passes a law that makes their product obsolete.
- Negative press causes public awareness and people stop buying the product.
- The product has been found to be harmful.
- A larger competitor makes it their mission to take market share away from them at all costs.
- Their profit margins are so tight that the slightest setback has monumental effects.
In some or all cases, these may be unforeseen issues that catch a corporation off guard and blindside them. While you may not be able to prevent these issues, you can prepare your corporation in the event that they may occur.
New product infusion is one of the sure ways to breathe new life and revenue into a corporation. It should be a corporation's goal to diversify and always explore new markets or trends. By maintaining your corporation's exposure of one product or product-line to no more than 25 percent of your total product portfolio, this will ensure that you can quickly and efficiently redirect your company's strategy path if the unthinkable happens.
To start preparing your corporation with backup resources for new products, contact us. Before long, you'll plot your corporation's path on a much safer course.