Question - The Revenue Transaction cycle
Brisbane ltd has always had a strategy of product differentiation; that is, providing high quality products and extracting a price premium form the market. During the recent economic downturn, Brisbane ltd has seen its customer base diminish and has decided to move strategically to a cost leadership strategy, that is to try to sell more products at a lower price.
a. What are the implication of this strategy change for the revenue cycle?
b. What are the implication of this strategy change in terms of the usefulness of historic sales data for decision making?