Trend Analysis

All products and services have a life cycle; that is, their popularity varies over time. 

Some product’s demand levels are more stable than others (pain medication).

A trend is a general movement (growth / decline) in the sales revenue / popularity / profitability of a specific product category.

A business that is established on the basis of a narrow range of products / services that are popular in the short-term likely to easily fail once the trend has turned.

A wise business owner must analyse trends in the market (research, sales analysis, industry expertise) to ensure that their business offers products and services that are trending upwards. It is not possible to have a full range of upwardly trending products, but products that are in the decline stage of the life cycle must be wound down and eliminated to avoid business failure.