Introduction
Lumentum's ROADM wavelength selective switches have experienced a 15% decrease in orders from telecom customers over the past quarter. This significant drop warrants a thorough investigation to identify the root cause and develop effective solutions. I'll approach this analysis systematically, examining both internal and external factors that could contribute to this decline.
This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Seasonal patterns could mask underlying issues. Expected answer: Yes, this decrease is beyond normal seasonal variations. Impact on approach: If seasonal, we'd focus on long-term trends; if not, we'd investigate recent changes.
Why it matters: Industry-wide trends could indicate external factors at play. Expected answer: Competitors have seen stable or increasing orders. Impact on approach: If industry-wide, we'd focus on macroeconomic factors; if Lumentum-specific, we'd examine internal issues.
Why it matters: Product lifecycle stage affects customer purchasing behavior. Expected answer: Current models are mid-lifecycle. Impact on approach: If end-of-lifecycle, we'd focus on new product development; if not, we'd investigate other factors.
Why it matters: Changes in go-to-market approach could impact orders. Expected answer: No major changes in pricing or sales strategies. Impact on approach: If changes occurred, we'd evaluate their impact; if not, we'd look at other internal factors.
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