Split Personality

As a product nears obsolescence, volumes decline, resulting in a diminishing yield from manufacturing facilities, supply chains, and overhead, such as sales and engineering centers. When margins decline too far, production is halted. But a smart alternative is to split off operations of the end-of-life product into a separate entity. That creates revenue potential from assets that would otherwise have been sold off or shut down – and it produces a revenue stream from customers that wouldn’t have existed.