A.
The Problem
There appears to
be no market today without intense competitive
pressures. What is more, the greatest competitive
pressures occur with the 20% of an organisation’s
products that deliver 80% of the organisation’s
returns, those “bread and Butter” products. Winning
or just maintaining sales in such markets results
in lower prices and reduced profits. At a 30%
gross margin a 1% decline in price results in
an approximate decline of 7% in the bottom line! |