Traditional Culture Encyclopedia - Traditional stories - What are the disadvantages of traditional business model for enterprises?
What are the disadvantages of traditional business model for enterprises?
At present, the traditional business model mainly has two disadvantages, one is production and the other is product marketing. Manufacturers of traditional business model can't directly connect with customer groups, and can't understand customer needs at the first time, which leads to the problem of backward production, increased inventory and obvious increase in storage costs, and finally leads to insufficient cash flow. In marketing, the traditional business model is based on a large number of stores and employees, which greatly increases the sales cost. For the emerging online shopping model, the traditional marketing model has gradually lost its competitiveness.
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