The Decline Phase Of The Sigmoid Curve

943 WordsNov 27, 20154 Pages
Small businesses have their work cut out for them when they first open up and release their product. There are many reasons as to why a small business may not be able to withstand the pressure of the market. A big reason for the bankruptcy is the owners do not know when they are in the decline phase of the sigmoid curve. The sigmoid curve has three phases, the learning phase, the growth phase and the decline phase. The problems usually start at the beginning of phase 3, the decline phase. This is where companies should be looking for ways to change their product slightly in order to get the customers attention again.The larger companies with high-valued managers mostly get out of the decline phase and back into the learning phase, but small businesses with a sole owner run into problems. Here, once the owner sees that his product is growing, he does not have the experience needed to know when he needs to change his product in order to become competitive once again. CHANDLER The world of business experiences never ending growth, creating a pool of competition. There are always businesses around to replace those that go under, and others to replace those that slip from the top. In a business world with such intense competition, every little detail can be the difference between global distribution and bankruptcy. This makes it difficult for businesses to begin the climb to top, many getting started at the bottom and unable to make any progress before bottoming

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