PSPO-II · Question #27
The leading revenue-producing product in your portfolio has: - High Current Value - Low Unrealized Value The product has been losing customers for several years and revenues are down. Using those…
The correct answer is B. Maintain the product, but begin reducing investment; seek other opportunities for future growth. A product with high current value and low unrealized value is in the harvest stage of the product lifecycle. This means that the product has reached its peak and is facing increasing competition and decreasing customer demand. The best strategy for this stage is to maintain the…
Question
The leading revenue-producing product in your portfolio has:
- High Current Value
- Low Unrealized Value
The product has been losing customers for several years and revenues are down. Using those two data points and the options below, what is the first action you should take? (Choose the best answer)
Options
- AIncrease investment in the product to create greater interest and bring old customers back.
- BMaintain the product, but begin reducing investment; seek other opportunities for future growth.
- CDrop the price for the product to attract new customers.
- DIncrease marketing for the product.
How the community answered
(27 responses)- A15% (4)
- B48% (13)
- C7% (2)
- D30% (8)
Explanation
A product with high current value and low unrealized value is in the harvest stage of the product lifecycle. This means that the product has reached its peak and is facing increasing competition and decreasing customer demand. The best strategy for this stage is to maintain the product quality and customer satisfaction, but reduce the investment in new features or enhancements. The product owner should seek other opportunities for future growth, such as developing new products or exploring new markets.
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