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Profitability is down!

Why? Can be because of two reasons


1. Revenue is down
2. Cost is going up
Revenue
Could be because of volume or could be because of price
1. Have we decreased our prices due to competitor pressure? Yes? No?
2. Do we have different products in our portfolio? If yes, what is the growth
pattern in each of these products?
3. How have we positioned ourselves over these segments?
Possible Segments to get data for, isolate & explore:
By product / product line
By distribution channel
By region
By customer type (new/old, big/small)
By industry vertical
4. Competitor market share in segment which is losing ground, increasing or
decreasing?
5. Industry market size, increasing or decreasing?
If revenue has gone down, then ask the following questions
1. What is the revenue growth of the competitor over the last 3 years?
2. Industry wide? Growth? Yes or No?

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