Αδύναμα προϊόντα : ενίσχυση, αποδυνάμωση ή κατάργηση από το προϊοντικό χαρτοφυλάκιο
Dealing with feeble products : strengthening, weakening or abolishing the product portfolio
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Keywords
PEST ; Porter’s 5 Forces ; SWOT ; BCG Matrix ; Barksdale & Harris Matrix ; 7 C’s results model ; Break Even Point ; AVCAbstract
This paper discusses the assessment of the condition of a product that is in a hazardous position, while giving general methods of its recovery, if it is finally decided that at the moment this is the best solution. Thus, it consists of four distinct parts: First of all, a basic analysis of the company's external environment is presented: on the one hand, the macro-environment, ie the country, with the specific characteristics that distinguish it, and on the other hand its micro environment, ie the market where it operates and its competitors. Then, the dynamics of a product from the point of view of business strategy and the reasons for its existence in the company's product portfolio are analyzed, while emphasizing on its characteristics and the way it is promoted in the market, focusing on the products that are in a difficult position and therefore need special treatment. Going a step further, methodologies for managing such negative situations are proposed, aiming to reverse the conditions and reposition the product in its path as a long-term profitability asset. Last but not least, an economic approach is made, so that it can be measurably decided whether the product is positively or negatively contributes to the company’s results. Finally, three case studies of existing companies are presented, describing the situation and the reasons that led them to evaluate the abolition of a product, as well as the possible moves and efforts they made to revitalize it, whether they were succeeded or not. At the end of the research, a set of simple self-questions is built, in order to help the reader-executive that is probably reading this research, to better and more easily understand the state of a hypothetical product that interests him, as well as the actions that are beneficial to take in action to improve the market position of it.