a. Decline of business revenueIf it is determined that certain products that account for a major portion of
business revenue will probably decline in terms of revenue contribution over
the next 3–5 years, then you should ask the following questions:
b. Growing marketIf your research indicates that the market is growing, some questions to ask are:
Why is the product revenue likely to decline?
Either the product becomes obsolete or there remains a niche or specialty
market for the product.
What product or products will be taking its place?
What associated or accessory products might be affected?
Does the new product involve new or innovative technology?
What related products will be necessary to stock in order to support the new
product?
How are consumer preferences changing?
Is the decline in the product an isolated thing or is it an indication of a
larger shift in the market?How fast is the market growing?
In what way is it growing?
Will the demand grow for products of the same type or is the trend towards
offering the customer more choices of
Quality performance Appearance Price
What will this mean to your business in terms of investment in inventory,
trained staff, product support, store space, and marketing expense?