Kindly give suggestions and comments to improve.
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ESSAY QUESTION:
“Since no business can be all things at once, companies that specialize in one product or service are more efficient than those that offer a diverse product mix.”
From your perspective, how accurate is the above statement? Support your position with reasons and/or examples from your own experience, observations, or reading.
YOUR RESPONSE:
I agree with the statement that companies that specialize in one product or service are more efficient than those that offer a diverse product mix. I will present my explanation below.
Firstly, if the company specializes in a product then it will have a very focused research and development group and will try to incorporate the latest and best features in its products. This will help it to capture a big market share and perform well compared to a company with diverse product mix. Its generally seen in the industry that companies that focus on single product are more popular and have higher profits compared to others. Take the example of Coco-Cola, Google and Oracle. All of the these companies focus one core business product or service.
Secondly, the companies with diverse product mixes have markets all spread out and various management methods suited for each of the different services or products. This leads to redundancy and high cost and causes inefficiencies. On the other hand, a company specializing in one product or service will have the best methodologies for manufacturing, distributing, marketing and managing its product since these services have been bench marked.
Thirdly, if the company has a diverse product mix, some of the products might be mismanaged due to lack of focus and might cost the company dearly. This is seen very often in the financial industry. Moreover, since the company has to focus on so many products, a new company might take over the other companies' market share. On the other hand, a company with a single product or service is so focused on its product and market that it is very difficult for new entrants to take its share.
In conclusion, I agree that companies with single products and services are more efficient compared with those with diverse product mix.
Thanks
ESSAY QUESTION:
“Since no business can be all things at once, companies that specialize in one product or service are more efficient than those that offer a diverse product mix.”
From your perspective, how accurate is the above statement? Support your position with reasons and/or examples from your own experience, observations, or reading.
YOUR RESPONSE:
I agree with the statement that companies that specialize in one product or service are more efficient than those that offer a diverse product mix. I will present my explanation below.
Firstly, if the company specializes in a product then it will have a very focused research and development group and will try to incorporate the latest and best features in its products. This will help it to capture a big market share and perform well compared to a company with diverse product mix. Its generally seen in the industry that companies that focus on single product are more popular and have higher profits compared to others. Take the example of Coco-Cola, Google and Oracle. All of the these companies focus one core business product or service.
Secondly, the companies with diverse product mixes have markets all spread out and various management methods suited for each of the different services or products. This leads to redundancy and high cost and causes inefficiencies. On the other hand, a company specializing in one product or service will have the best methodologies for manufacturing, distributing, marketing and managing its product since these services have been bench marked.
Thirdly, if the company has a diverse product mix, some of the products might be mismanaged due to lack of focus and might cost the company dearly. This is seen very often in the financial industry. Moreover, since the company has to focus on so many products, a new company might take over the other companies' market share. On the other hand, a company with a single product or service is so focused on its product and market that it is very difficult for new entrants to take its share.
In conclusion, I agree that companies with single products and services are more efficient compared with those with diverse product mix.
