Being an ambitions future entrepreneur, I found fellow student Linh Nguyen’s blog titled, “Elephants, Rabbits, or Deers?!”, very enticing. Her blog enriched me with a new perception on how to maximize profit.
In Linh Nguyen’s blog, she breaks down her perception of the Elephant, Rabbit or Deer perspective written by an online blogger, Mark Suster. Nguyen subsequently agrees with Suster. Nguyen, additionally, is implying, over demand will cause the business to be “driven to [an] undesirable direction” (Linh Nguyen). This is where I disagree.
Unlike Nguyen’s statement, “having an over demanding [quantity of] customers that are beyond the control of the firm might exhaust the business”, I consider over demand in your business a paramount situation to be in. As demand increases and quantity stays the same, ultimately it will mean a shortage of goods being supplied. These situations can result in expansion of the company and eventually easier “elephant kills”. Kanye West is a prime example of how over-demand is advantageous.
West’s Yeezy product line has grown significantly over the past few years, creating new fashion trends in clothing but more particularly in shoes. Instead of mass producing Yeezys, (an exclusive Kanye West sneaker), West produces a limited supply. This builds customer anxiety and once the footwear is released, they are sold out within minutes. In my opinion, West is a genius.
I concur with Linh Nguyen and say, “choosing [a] customer segment is a vital decision one company has to make”, however, serving to a greater customer segment will better benefit the company. Lastly, high demand is not a bad thing, in my opinion, it’s the greatest position to hold as a company. It establishes long term customer relations while opening up new business channels. The company’s goods are bought at a higher rate generating more revenue. At the end of the day, if a business doesn’t make money, they don’t exist.