What are the risks of product line extension and how can you mitigate them?
Expanding your product line might seem like a surefire way to increase market share and customer loyalty, but it's not without its pitfalls. Product line extension involves adding new items to an existing range of products, which can be similar in function or target the same customer base. While the strategy can attract new buyers and satisfy more needs, it also carries risks such as brand dilution, increased competition, and operational complexities. Understanding these risks and knowing how to mitigate them is crucial for ensuring your product line extension strengthens rather than weakens your business.
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