Our revenue and market share are good but we are not able to make the profit. What are the factors behind it?
If you are not making profit despite good revenue and market share, the obvious reason is almost always the costs. You just don’t know your costs.
You may be penalized by emergency purchase and you just don’t know it. You may produce a lot, sell a lot, but you also pay a lot. There is no warning bell from the system that you are bleeding. But you will see it in the cash flow.
You may be over investing in R&D expenses, marketing expenses, maintenance expenses, and equipment investment. Much more investment do not give you much more results. The simulation game follows this law of economics called diminished return.
Also, you could be missing out on the market potentials created by your investment because you are not producing enough to fully capitalize the potential.
Again, plan well. Align production request/allocation with inventory, align investment with sales and market share desired.