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| Topic: |
Business
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| Number of pages / Number of words: |
17 / 4631 |
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The cost of switching products is low is fairly easy for buyers to do. One risk in the industry is forecasting. Overproduction is detrimental, because of short product life cycles and seasonal buying. Overproduction will lead to products on the shelf which will be marked down relatively quickly. Suppliers will also be unlikely to order products if it has competitors products on the shelf; so for an example Taylormade over forecasts even if Cleveland Golf is selling well Dick's Sporting goods won't buy more Cleveland products until it sells its Taylormade...
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Suppliers will also be unlikely to order products if it has competitors products on the shelf; so for an example Taylormade over forecasts even if Cleveland Golf is selling well Dick's Sporting goods won't buy more Cleveland products until it sells its Taylormade. The seasonality of the product exacerbates the problem as well...
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