Literature Review Findings of sales channel

In this chapter, the discussion of the international expansion of the sales channels as a potential solution for the problem in the European Market will be discussed. And moreover, the formulation of the research question is done in a certain way to study the problem: Why the Sales strategy needs to be re-evaluated (by describing the Life cycle)? What are the best options for the sales channel plans for a tech enterprise that aim to extend its volume of sales in Western Europe, these plans have been developed throughout the time, why and how? The PC enterprises will lock upon some different solution for the problems as well to overcome the decline in order to speed up the introduction of the models of the new product in the market to benefit from the high prices so that the companies can be developed in the early state and can improve their standards in the competitive market. To solve the research problem, we can use the operation and market strategy.

 Life Cycle of sales channel

Every company organization goes through some changes and a life cycle. And in the business world, it is important to take different initiatives to analyze the current situation of the company.

In this graph, we will discuss about the life cycle of the business.  On the horizontal axis, we have time and year, and on the vertical axis, we have Dollars, which shows the fluctuation between the different financial matrix. Every company begins by launching a new business idea and then the business grows rapidly in the expanding phase, there might be come competition, and by facing these competitions, the company reaches to a level of maturity.

So, let us talk about the business life cycle in this graph across the horizontal access we got time and year and on the vertical access Dollars, which will represent various financial matrix.

The financial matrix fluctuates with different at different stages of the life cycle. Firstly, we will take a look at the scale. The launch of the company begins at zero, and then the company grows rapidly in the expansion period. The shake occurs when the company is facing some competition in the market. And we can see a peak in the graph, and this shows that the competition between the companies has become fierce and the industry has become mature and then it declines. By following the revenue and the sales we can gain profit: There might be less profit in the early days of the new company as we can see the profit is tipping negative in the graph and we can also see a small phase during the growth section, but the sales will grow slowly, and it may even decline during the maturity.

It is important to see the difference between the cycle of profit along with the cycle of sales, and we can see a postponement in the growth of sales as well as in the growth of profit, and this has been considered as a significant factor when we discuss about the fundings. In the third part of the cycle, the discussion about the cash flow is conducted.

When the discussion about the upfront costs of the business that is recently started, many of the costs may be non-reflected and capitalized, and as we can see in the graph, the cash declining rate is more negative than the profit in the early stages of a new company. But later on, the rate of the cash increases than the profit because when the spending on the capital is larger than the cash generation is higher. Many businesses face different changes and experience a life cycle in which they improve themselves by reinventing things, reinvesting in the technology, and they might continue to repeat the cycle. Many business leaders release new products with small modifications.

But now Synology has reached to its peak in the life cycle, and now it is tome to reevaluate the strategies of the sales so that this will create the life cycle regeneration and the fear of the failure will drive the company to pass through different circumstances and face decline in the profit and the sales.

https://www.linkedin.com/pulse/time-sales-strategy-review-here-5-things-include-peter-%C3%B6nnby

Synology should re-evaluate the strategies to find the best transition. As I the above section, we have discussed about the importance of the re-evaluation of the strategy for sales.