MGMA01H3 Chapter Notes - Chapter 11: Business Analysis
15 Apr 2011
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Introduction: product mix is the assortment of product lines and individual offerings available from a company, product line is a series of related products, individual offering is a single product within a product line. The existing product mix: starting point of product-planning is to assess the firm"s current product mix. Cannibalization: cannibalizing is the situation involving one product taking sales from another offering in a product line, firm wants to avoid a costly new-product introduction that will adversely affect sales of one of its existing products. The important of product lines: most companies offer their customers product lines, several factors account for the inclination of firms to develop complete product lines rather than relying on just one product. Desire to grow: a company places definite limitations on its growth potential when it concentrates on a single product, firms often introduce new products to offset seasonal variations in the sales of their current products.
