How a Mobile App Development Startup Integrated Supply and Demand Equilibrium for Fostering a Profitable Growth?

A software developer along with a few like-minded fellow workers initiated a mobile app development startup. However, the lack of effective strategies to anticipate the supply and demand patterns resulted in low client satisfaction and restricted growth. The company authorities deployed the services of Research Nester Private Ltd., to work out a strategy for aligning their supply with the expected and futuristic demand of their products.


An overview:


The mobile app development endeavor was started by four like-minded software developers in 2020, who quit their well-paying jobs and used their savings for the purpose. Although their technical know-how and strong willpower and self-belief were admirable, the lack of knowledge regarding the market uncertainties took a toll on the new venture.


The venture was started during the COVID times to cash in on the lockdown situation when people were tied up to their mobile phones for everything.


In the beginning, the innovative mobile apps of the company saw good sales. Driven by the positive outcome, the company continued the same effort. But slowly the fluctuating client requirements- including changes in project scope, timelines, and feature requests- started resulting in delays, cost overruns, and customer dissatisfaction. This challenged the company’s functionality and profitable growth.


The entrepreneurs sought out the services of Research Nester analysts to help them navigate through the demand and supply intricacies and challenges.


The Story

The mobile app development start-up had some key strengths that included its six phases of app development such as the strategy of the app, its analysis, and planning, designing and development, and finally testing and deployment. However, it relied on various resources, including third-party libraries, APIs (Application Programming Interface), and development tools. These resources needed to be managed and integrated efficiently which became a challenge. There were significant compatibility issues, version control problems, and dependency issues. As a result of these disruptions, the development process and project timelines were impacted. By 2021, it had failed to make a solid client base and missed many lucrative opportunities owing to miscalculations and inaccurate predictions of market demand. The falling profits called for a professional outlook. Research Nester analysts were consulted to devise a strategy that would help manage the dynamic market trends and mitigate risk and uncertainty.

The Solution:

The major pain point of the company was its incapability to strategize its supply and demand equilibrium. RNPL analysts reviewed the company’s profile and its products from the user’s perspective. The functionality of the App and also the user experience and user engagement it provided would be its acid test. Apart from that, with the growing awareness regarding cyber-attacks, there was also an urgent need for security and privacy in the apps. The company was focused on recreational and social networking apps such as social media apps and apps for singing, playing, and tuning a musical instrument, and also gaming, and also mobile apps for banking. They had planned to strategically expand as per the demand from the clients. RNPL consultants suggested that health applications showed high potential in the near future and so did apps for travel bookings and e-commerce. The demand was anticipated to grow exponentially with the growth of the respective sectors. Research Nester analysts offered a customized solution to the client by displaying the global demand analysis & opportunity outlook of the Mobile App Development Market report. The consultants further devised a very efficient supply and demand analysis strategy-

  • Keeping pace with the rapidly evolving technologies, operating systems, and platform updates
  • Reducing overhead costs involved in app development
  • Keeping the pricing of the products competitive
  • Devising adaptability and scalability
  • Acquiring and retaining skilled app developers and designers
  • Promoting efficiency in delivering products on time
  • Continuously learning and investing in skill development
  • Using effective marketing strategies for effective branding and unique value propositions.


Owing to the faulty supply and demand mismatch consequent lack of customers the product sales amounted to just ~USD 4500 in the first year and went down further to ~USD 2300 by the end of 2021. With the implementation of the strategies and analytical tools, as suggested by Research Nester analysts, the startup was able to refine its supply-demand management and restructure its business model. The continuous improvement for enhancing user experience brought in more customer satisfaction and a loyal and strong customer base. The sales gradually increased reaching ~USD 9200 in 2022 and ~USD 4500 in the very first quarter of 2023. By adopting the strategies the startup was able to successfully manage the demand and supply challenges and deliver high-quality mobile apps, satisfy client needs, and position itself as a reputable and reliable mobile app development startup in the market.

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