Evaluating Product Performance—Finding Winners and Losers

Showing the sales history of products over 3–5 years gives a good snapshot of their relative performance. This graph illustrates performance of three products over 5 years and shows that Product B’s sales volume has decreased and that of Products A and C have increased. In 2007, Product B was the big seller; in 2011 Product A has the highest sales.

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Graph 8. 5 Year product sales trend.

Such changes in the relative performance of products require explanation when a company decides to grow beyond “business as usual”—just keeping up with inflation or moderate growth—because diminishing ...

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