Wednesday, May 16, 2012

Why do you think the consistency of a product mix is important for an organisation?i need the definition of consistency, its importance, problems...

The product mix refers to the total number of product lines a company has to offer. Consistency, in reference to a product mix, refers to how closely related the offered product lines are to each other. The consistency is measured in terms of use, production and distribution.


Consistency of product mix is advantageous for positioning the company in a specific market or as a niche producer or distributor. This consistency,many a times, ensures that the company's name becomes synonymous with the product. For example, for a long time, Microsoft was a major player in operating systems and productivity softwares. Another example of a great product mix was Nokia that sold a wide variety of mobile phones across the world. 


The problem with consistency in product mix is with venturing into a new domain. For example, Microsoft's foray into portable music players with Zune failed because it is considered a major player in softwares, but not hardware. 


Hope this helps.

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