Know When to Say When - Why Not to Grow Your Business too Fast
Monday July 6, 2009
Last November, Nintendo WII angered customers and retailers when the company ran out of product to stock holiday shelves. More recently, Kentucky Fried Chicken (KFC) had Oprah Winfrey promote a downloadable coupon for free chicken. But after the company gave away 4 million free meals it stopped accepting coupons much to the chagrin of customers (but to the delight of the press which had a field day bashing KFC).
It is important to grow your business in such a way that demand for your products or services does not outstrip your ability to provide them. Sometimes, you have to resist the urge to grow big, fast.
Comments
Thanks for the post..
thanks for the post.
An Stochastic financial model could be a solution, It consist in a mathematical model that includes probability distributions of your sales, this model will show special signs of crisis or growth before it happens.