Manufacturing products that are not in high demand can lead to several potential pitfalls. Firstly, it can result in excess inventory, which ties up capital and can lead to increased storage costs. Secondly, it can lead to wasted resources, including time, labor, and materials, which could have been better utilized in the production of high-demand products. Thirdly, it can negatively impact a company's profitability and cash flow, as the sales of low-demand products may not cover the costs of production. Lastly, it can also affect a company's reputation, as it may be seen as out of touch with consumer needs and trends.
Chairman and CEO of the Walt Disney Company, Robert Iger, tells his story and lays out the principle...
View summary