It was revolutionary when you first introduced it. And it sold like hotcakes. But now other companies have jumped on the bandwagon with similar offerings. Your star product is now waning. Is it time to offer something new or should you keep it around? Here are some points small business owners should consider now that their once popular product is in decline.
This situation describes the last stage in a product’s life cycle—decline. It’s characterized by a general decline in a product category. For example, CDs once enjoyed a significant percentage of music sales. But with the availability of digital download services, CD sales have fallen significantly.
Generally, the options are to gradually phase the product out or to discontinue it immediately. Your choice is likely to depend on whether you think there is still a limited demand for it.
If there’s still a market, here are some options to consider:
Ultimately, most businesses are working on their “next greatest thing “ to offer customers. But you may be able to transition to the new product by managing the existing one through its decline stage.