Some companies manufacture and sell both their own brand as well as a private-label brand.What is the greatest risk to the company by pursuing this strategy?

Question

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The greatest risk to the company by pursuing the strategy of manufacturing and selling both their own brand as well as a private-label brand is cannibalizing its own brand. This happens when the private-label brand becomes more popular and preferred by customers over the company's own brand, leading to a decline in sales and market share for the company's brand. This could ultimately harm the overall reputation and profitability of the company.

Some Companies Manufacture and Sell Both Their Own Brand as Well