Four Steps to Forecast Total Market Demand

Recent history is filled with stories of companies and sometimes even entire industries that have made grave strategic errors because of inaccurate industrywide demand forecasts. For example: In 1974, U.S. electric utilities made plans to double generating capacity by the mid-1980s based on forecasts of a 7% annual growth in demand. Such forecasts are crucial […]

by

William Barnett

by

William Barnett

From the Magazine (July 1988)

Recent history is filled with stories of companies and sometimes even entire industries that have made grave strategic errors because of inaccurate industrywide demand forecasts. For example:

A version of this article appeared in the July 1988 issue of Harvard Business Review.

WB

William Barnett is the Thomas M. Siebel Professor of Business Leadership, Strategy, and Organizations at the Graduate School of Business, Stanford University. His research focuses on competition among organizations and how organizations and industries evolve globally. He is best known for his work on “Red Queen Competition,” where firms learn from competition and so become stronger competitors over time. Follow him on Twitter @BarnettTalks.

Four Steps to Forecast Total Market Demand

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