Wednesday, October 20, 2010

No Yahoo for Revenue


Yahoo, Inc. has issued a weak forecast for current quarter revenue growth.

This reflects the weakness in the US economy and the difficulty that major corporations are having in increasing revenue.

If there is one aspect of business that American corporations have consistently excelled it is revenue growth through various forms of marketing, namely product, place (logistics/supply chain management), promotion, and price. Manipulating these four variables is the essence of increasing revenue.

Though it is too early to know, the trends indicate that the era of old-time marketing is coming to an end as consumers struggle through the deleveraging process and unemployment remains very high.

For some time I have thought that the study of logistics/supply chain management might have peaked pre 2008.

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