Company “Health” has been producing their core product for 20+ years.
With consistent refreshment of their core product, it has been relatively stable and increasing over the years.
In 2001 (not shown above), they broke into an entirely new market with their New Product A which gave them a huge boost. You can see that in 2007 from the graph above, that their Product A had almost the same number of sales as their core product. However, Product A has been dropping and is slowly being replaced.
Part of this “replacement” of Product A is due to their New Product B which is launched in 2010. It quickly became widely popular and briefly exceeded their core product sales from 2012 to 2014.
In 2013, they decided to combine their “Complementary Products” & their declining “Product A” together with their “Other Products” in their reporting and have broke into 3 entirely new segments in 2015, 2016 and 2018. Unfortunately, details on the breakdown of specific other products sales are not given but its Total Other Products sales seems to be catching up to its Product B sales.
As more of their products is sold, their services revenue also went up in conjunction. We see a steady increase in their service revenue from 2010 as they kept breaking into new products segments.
Just by looking at these graphs, what would you think of this company?
Is this a company with innovation? Is this company facing crisis? Do you think this company can grow strongly for another 10 years? 20 years?
Thank you for reading
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