Sidestepping Economies of Scale
Let’s suppose that your business is doing well. Your company is growing and expects to see additional growth as you launch more and more products and service. Many of your new offerings carry healthy margins.
Still, is something wrong with this picture?
Your ability to accurately forecast the demand for your new products and services is, in a word, terrible. Your people tell you, “We overestimate demand as often we underestimate it, especially in the early years of a product’s life. Some of our offerings carry on for a remarkably long period, giving us plenty of time to amortize our investment. Others blossom quickly but wither just as fast. Then we’re left with equipment and people far in excess of what we need ...
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