Product Proliferation

Literature Review: harvest-home Proliferation Outline Product proliferation occurs when organizations market some variations of the same intersections. This roll in the hay be done through varied colour combinations, ingathering sizes and different product uses. This produces diversity for the tauten as it is adequate to(p) to capture its sizable portion of the market. However, it can also be considered that marketing so many refreshed products leads to economic resources being wasted; the consumer becomes confused and mistakes are make in the purchase of products. Product proliferation is often used by incumbent firms as method of entry deterrence. By develop a large variety of products, the incumbent firm is able to occupy gaps in the market that potential entrants may extradite exploited, thus reducing the threat of competition. The very dynamism of product proliferation makes it hard to manage. Complexity is spawned by an ever-changing landscape of node request and companies attempts to meet that demand with configurable products and to a greater extent product variations. Product proliferation can sometimes also lead to cannibalisation of the existing product line of the company and should be justified by general increase in market apportion. Discuss Literature Review Introduction (Bayus & Putsis, Jr.

, 1999) demand side, a broad product line can throw overboard a firm to satisfy the needs and wants of heterogeneous consumers more precisely- which can increase overall demand faced by the firm. Higher growth implies greater incentive for all firms to draw out their product line to satisfy various consumer segments. (Copulsky, 1976) market share is important but dont jeopardise gain for it (Mason & Milne, 1994) it is better for a consumer to choose between several(prenominal) of your products than to choose between one of yours and another companies. The ideal slur is when a second brand or line appurtenance draws all its customers from poducts offered by competing firms. However cannibalisation can exist... If you want to pop a full essay, order it on our website: Orderessay

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