Question

While it sounds reasonable that companies should focus on making the products it knows how to make really well, one downside of this approach is that __________________________________.

Answer 1

Customer may not want the product which the company is making well.

Step-by-step explanation:

It is not necessary that market needs those products which the company is producing perfectly. It cannot enter into product differentiation and cannot meet customer demands and needs of specific or altered products. The company can achieve specialization and can be a niche player in the market but also on the other hand company’s business is limited to only few products at which it is perfect. It cannot allow customization to its products.