What is the primary disadvantage of employing a product specialization strategy?
A)The organization may be spread too thin.
B)The organization achieves neither marketing nor manufacturing synergies.
C)R&D-manufacturing has the difficulty of producing multiple new lines.
D)There are too many product substitutes over which a firm would not have control.
E)Gaining market distribution will be costly.

Question

Quizplus · Accepted Answer

With product specialization the firm gains R&D-manufacturing synergy but gaining market distribution is costly because it must reach very different market segments.

What Is the Primary Disadvantage of Employing a Product Specialization