ABSTRACT
Here is the scenario: An industry noted for its very large product line and for its well-defined and limited market discovers that this market is shrinking rapidly due to a shift in the allocation of funds to the purchase of other products that are not now produced by the industry, and to the disappearance of a number of customers from the market. At the same time, competition is increasing from new entries into the industry. The number of units sold of each of its products is often reduced by half or more over a period of ten years. What should the industry do to reverse the pattern? Two obvious solutions come to mind: (1) reduce the number of products offered and concentrate on those that have the best sale; and (2) find out what its customers are now buying and add it to the line.
