Question

What are advantages and disadvantages of product concentration vs diversification??

Please answer without photos

Answer 1

Ans: Advantages of product concentration:

1. Advantage of Economies of scale will be received.

2. Quality of the product is to be improved.

3. Competitive benefit is to be received.

Disadvantages of product concentration:

1. Market changing scenario benefit willn't be received.

2. No diversification of Market Risks.

3 Advantage of utlising all resources willn't be there

Advantages of diversification:

1. Market advantages could be taken

2. Risk is distributed.

3. All resources could be properly used.

Dis-Advantages of diversification:

1. Benefit of economies of scale will be lost.

2. Quality importance is sacrified a bit.