Strategic Options for Underperforming Product Lines PPT

This PPT slide, part of the 62-slide Product Line Profitability Analysis PowerPoint presentation, presents a structured approach to evaluating product line profitability, specifically targeting products that are either unprofitable or underperforming. It outlines 5 strategic options to consider, each accompanied by critical questions that guide decision-making.

The first option focuses on cost reduction. Key inquiries include assessing the company's relative cost position and identifying areas of disadvantage. This prompts executives to analyze operational efficiencies and cost structures to enhance profitability.

The second option explores the possibility of increasing prices. Here, the slide emphasizes understanding customer price sensitivity and anticipating competitor reactions. This is crucial for determining whether a price hike could be viable without losing market share.

Increasing volume is the third option. It encourages companies to evaluate their penetration in existing accounts and the effectiveness of targeting new customers. This suggests a need for market analysis and sales strategy adjustments to boost product uptake.

The fourth option raises the question of whether to maintain a product as a loss leader. This involves assessing the effectiveness of the product in driving traffic or sales to other more profitable items. It’s a strategic decision that can impact overall brand positioning.

Finally, the slide considers the option of dropping the product altogether. This requires a careful analysis of the potential cost implications on other products and understanding how competitors and customers might react to such a decision.

Overall, the slide serves as a comprehensive decision-making framework for executives, prompting them to critically assess their product lines and make informed choices that align with broader business objectives.

This slide is part of the Product Line Profitability Analysis PowerPoint presentation.

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Product Strategy Sales Strategy Cost Reduction Market Analysis Sales Positioning

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