Advantages and disadvantages: what should be taken into account when conducting an analysis?
Posted: Tue Feb 18, 2025 7:22 am
Pros:
Possibility of prioritization of goods;
Increasing profits by placing the right emphasis;
Identification of problematic positions that require attention;
Understanding user preferences to adjust production structure;
Optimization of purchasing and storage of specific product categories or items;
Assessing the level of demand and customer interest;
Determination of product competitiveness;
Assessing the impact of previous actions on products through regular research.
Cons:
There is no accounting for the series of goods.
For example, a red sofa generates a lot of revenue. At the same time, it requires little investment in advertising. The brand decides to produce as much of it as possible, deliver it to the list of us mobile number database warehouse and sell it. But the item has ten more embedded units: a red leather sofa, a red fabric sofa, an exclusive one, and so on. Without going into detail, it may turn out that the warehouse is full, but not with the units that are sold.
A head-on approach.
For example, it turns out that the service is ineffective and unprofitable. It is in some demand, but it is in the lower right corner of the matrix. And in theory, it should be removed from the business. But if you do this without delving into the issue, there is a chance of making a mistake. Within the business itself, the service may be an input link for selling some complex technical product or help sell something to the client. That is, according to the study, it is unprofitable, but in the general outline, it is an associated conversion to the end customer. And by removing this element, the company will also lose the final sales, which were in the matrix as the most stable and revenue-generating.
A head-on approach is when a decision is made based on the results, and what lies behind them is not analyzed. It happens that a product does not sell because it has recently entered the market and needs media support. If you provide it with a sufficient level of coverage placements, the product will have the potential to move to a group with high efficiency.
The study reflects what is happening here and now, but does not answer why.
Possibility of prioritization of goods;
Increasing profits by placing the right emphasis;
Identification of problematic positions that require attention;
Understanding user preferences to adjust production structure;
Optimization of purchasing and storage of specific product categories or items;
Assessing the level of demand and customer interest;
Determination of product competitiveness;
Assessing the impact of previous actions on products through regular research.
Cons:
There is no accounting for the series of goods.
For example, a red sofa generates a lot of revenue. At the same time, it requires little investment in advertising. The brand decides to produce as much of it as possible, deliver it to the list of us mobile number database warehouse and sell it. But the item has ten more embedded units: a red leather sofa, a red fabric sofa, an exclusive one, and so on. Without going into detail, it may turn out that the warehouse is full, but not with the units that are sold.
A head-on approach.
For example, it turns out that the service is ineffective and unprofitable. It is in some demand, but it is in the lower right corner of the matrix. And in theory, it should be removed from the business. But if you do this without delving into the issue, there is a chance of making a mistake. Within the business itself, the service may be an input link for selling some complex technical product or help sell something to the client. That is, according to the study, it is unprofitable, but in the general outline, it is an associated conversion to the end customer. And by removing this element, the company will also lose the final sales, which were in the matrix as the most stable and revenue-generating.
A head-on approach is when a decision is made based on the results, and what lies behind them is not analyzed. It happens that a product does not sell because it has recently entered the market and needs media support. If you provide it with a sufficient level of coverage placements, the product will have the potential to move to a group with high efficiency.
The study reflects what is happening here and now, but does not answer why.