Reasons for Negative Volatility: Industry Examples»

Negative Volatility Industry Examples

Negative Volatility Industry Example #1

California Commercial Healthcare Market

% (volatile units)

Explanation: This example shows the reasons for volume loss due to Decrease Use and Get Out for all companies that lost volume in the California Commercial Health Care Market. The single greatest cause of volume loss was high prices, followed closely by the failure to offer a particular price point.
Negative Volatility Industry Example #2
DECREASE USE AND GET OUT REASONS
Coated Paper Market (% volatile units)
Explanation: This example shows the reasons for volume loss due to Decrease Use and Get Out for all companies that lost volume in the Coated Paper Market. Companies lost volume because they did not offer a broad enough product line (grade range), because their paper did not run well in the presses of the customers (runnability), because the supplier had limited the customer on the amount he could purchase (allocation), because his paper did not have the quality brightness the customer sought (brightness), or because the supplier offered the customer prices that were too high (price).
Negative Volatility Industry Example #3
DECREASE USE AND GET OUT REASONS
Commercial Printing Market (% volatile units)
Explanation: This example shows the reasons for volume loss due to Decrease Use and Get Out for all companies that lost volume in the Commercial Printing Market. The principal reason for Get Out and Decrease Use events in this market that was the supplier had not kept up with technological advances in the industry.
Negative Volatility Industry Example #4
DECREASE USE AND GET OUT REASONS
Less-Than-Truckload Market (% volatile units)
Explanation: This example shows the reasons for volume loss due to Decrease Use and Get Out for all companies that lost volume in the Less-Than-Truckload Market. In this market, high prices caused 23% of the volume losses. The customers in this industry, especially larger customers, were moving to a concept, called dedicated logistics, where the customer outsourced most or all of his transportation needs to a third party, who made his own Less-Than-Truckload trucking arrangements. This development caused the customer's previous incumbent supplier of LTL service to be displaced.
Negative Volatility Industry Example #5
DECREASE USE AND GET OUT REASONS
Truck Manufacturing Market (% volatile units)
Explanation: This example shows the reasons for volume loss due to Decrease Use and Get Out for all companies that lost volume in the Truck Manufacturing Market. By far, the most important source of Negative Volatility in this industry was high prices.