How can MBA theory on product life cycle help you with online sales in your small business?

I recently spoke to an entrepreneur who sold her wares on eBay and Amazon. Business is going well, but she would like to earn $ 10,000 a month in sales without spending too much time because she believes in multiple revenue streams and wants to expand those other business models as well. My suggestion was to constantly introduce new products, but on a strategically timed basis. Okay, let’s talk about this.

Have you ever viewed a product life cycle chart in a business textbook? Well, if so, you saw the traditional ‘product life cycle’ teachings they teach in MBA schools, retail merchandising and marketing classes. Still, we can use and use this concept for online sales and new product planning, consider this concept.

Now imagine the ‘hill curve’ and if it starts at its steepest point, now is a good time to introduce a new product and get started, because eventually the first product will be flat. If done correctly, the new product will become hyperbolic and decompose the life cycle peaks of the first product. If you want to remain hyperbolic, you must continue to introduce products this way, as companies like Proctor and Gamble and GE are trying to do.

A particularly interesting case study is INTEL and Apple trying to stay in the high-profit sweet zone, it works wonders for their stock price. If you have a great product that really cooks but has a shorter lifecycle (examples: cell phones, chips and maybe an add-on for social networks or new features) then you can keep the price high and go for the early adopters “” from tech or companies that buy your products so they can stay on the border in the case of an AMD or INTEL.

If you look at that concept, you can see that concept working for someone who sells many different products online. You may be able to tell when you have a meteorite product that will move quickly but will burn out, so you launch your new product when your sales blow it out because they will burn out quickly and you don’t want your sales to refuel per month and leave you behind in a cash flow crisis. Look at that point from a strategic point of view.

I think you could use some math formulas to figure this out, and I imagine one day Oracle or SAP software connecting to a company’s digital business system (Bill Gates book; “The Road Ahead” reference) where there is an artificial intelligent system that tracks all outlets and sales, real-time inventory will be able to do this with 90% accuracy, giving executives the information needed to plan and devise strategies for capital expenditures, innovation activities and cash flow. But you can do it by hand with the same math since your small business is not that complicated; not yet.

Best of all, you can split your business into components and product categories and you have a good idea of ​​what you are doing and are planning an EXACATTACKILY course where you want to go; where you go! Think about it.

Source by Lance Winslow