How to improve revenue forecasts from strategic investments

Abstract

Purpose

One fundamental need of business executives: to obtain sufficiently reliable estimates of the likely revenues and profits from making a strategic move.

Design/methodology/approach

The article explains how to make more reliable estimates of the real targets for the company’s offering.

Findings

What often leads to revenue estimates that are way off is to attempt to identify some average willingness-to-pay.

Practical implications

“‘Competitors’ include those that may be unknown to the company and, in the case of a new-to-the-world offering, providers of substitute solutions.

Originality/value

As well-informed customers today have more choices than ever, careful customer analysis is of paramount importance to minimize the risks that can be managed and, as a result, maximize the chances of making successful strategic choices.

Citation

Deneffe, D. and Vantrappen, H. (2020), "How to improve revenue forecasts from strategic investments", Strategy & Leadership, Vol. 48 No. 6, pp. 51-58. https://doi.org/10.1108/SL-09-2020-0119