Identifying Products to Eliminate
Every company must periodically evaluate their product line to identify and eliminate unprofitable products. This process is known as product elimination, and it helps companies to focus on the areas where they can be most successful. Product elimination can be a difficult decision, as it often involves cutting a product that has been a part of the company’s identity for many years. However, it is an essential step to ensure that the business is growing and remains competitive in the market.
Benefits of Product Elimination
Product elimination helps companies to:
- Reduce costs and maximize profits
- Free up resources for more successful products
- Remove outdated products from the market
- Increase focus on the most profitable products
Identifying Products to Eliminate
When considering which products to eliminate, companies should look at a variety of factors, such as:
- Profitability – Are the products generating enough revenue to justify their existence?
- Customer demand – Is there sufficient customer demand for the product?
- Competition – Are there better, more innovative products on the market?
- Age – Are the products outdated and no longer relevant?
Examples of Product Elimination
Some examples of companies that have eliminated products include:
- Apple – In 2017, Apple eliminated the iPod Shuffle and iPod Nano.
- Amazon – In 2018, Amazon stopped selling its AmazonBasics microwave.
- Microsoft – In 2018, Microsoft discontinued its Windows Phone products.
Product elimination can be a difficult but necessary decision for companies to make. By analyzing customer demand, competition, and profitability, companies can identify areas where they can focus their resources and eliminate products that are no longer profitable or relevant.