Opinions expressed by Entrepreneur contributors are their own.
When it comes to business decisions, leaders often have to make tough calls on which products to keep and which to discontinue in order to ensure long-term profitability and growth. A prime example of this is when Steve Jobs took over as CEO of Apple in 1997 and decided to streamline the product line by eliminating over 70% of existing offerings.
Jobs focused on developing sleek and high-performing products that outshone the competition. His mantra, “Deciding what not to do is as important as deciding what to do,” proved to be a key factor in Apple’s success and eventual rise to becoming the world’s largest company.
Assessing the profitability of a product is crucial in determining its viability. Understanding the profit margin, tracking sales trends over time, and consistently analyzing the data are essential steps in making informed decisions. It’s important to know when to let go of products that are consistently losing money and not providing other benefits.
Additionally, continuously evaluating whether a product meets market needs is essential. Technological advancements and changing consumer preferences can quickly make once-profitable products obsolete. Regular market research and analysis can help businesses stay ahead of trends and ensure their products remain relevant.
Customer feedback is another crucial aspect to consider when evaluating product lines. Understanding how customers feel about a product, conducting surveys, and analyzing social media trends can provide valuable insights into customer preferences and satisfaction levels.
Ultimately, successfully managing product lines requires a balance of data-driven decision-making and understanding customer needs and market trends. By leveraging tools and strategies to evaluate profitability, market demand, and customer feedback, businesses can make informed decisions to sustain and grow their success.
Source link
