What is a primary advantage of a shallow product mix?

• A. Increased market share
• B. Improved product quality
• C. Easier to manage and reduces costs
• D. Wider customer segmentation

Answer: (C)

A shallow product mix refers to a strategy where a company offers a limited number of product lines, but within those lines, the company may offer a broad variety of products. One of the primary advantages of having a shallow product mix is that it makes it easier for the company to manage its operations.

When a company focuses on a narrower range of products, it can streamline its production processes, inventory management, and marketing efforts. This simplification can lead to reduced costs; for example, fewer resources are required for product development, production, and distribution. It allows a company to allocate its budget more efficiently and reduce waste. Additionally, managing a concise product line means that employees can become more specialized in their tasks, leading to improved operational efficiency.

Overall, the focus on a shallow product mix enables businesses to maintain flexibility and agility in their operations while potentially enhancing customer satisfaction due to a more focused approach to quality and service in the limited selection available.