Companies face many challenges when making crucial decisions to expand. The question can be either one of market specialization or product specialization. With either choice there are resulting synergies and potential pitfalls (Kerin, Hartley, Berkowitz, and Rudelius, 2006). For this discussion question, choose a company and discuss both synergies and pitfalls (at least two of EACH) of recent market specializations and product specializations in following their expansion strategies.
PRODUCT SPECIALIZATION: In product specialization, a company focused on a certain product and offers it to several segments. An example would be a microscope manufacturer that sells microscopes to university laboratories,government laboratories,and commercial laboratories might use.
The main advantage of product specialization is that it leads to strong reputation for the company in a specific product segment. Further, the greater product knowledge enabled by specialization leads to competitive advantage for the company.
For example, automobile company Hummer focused on off roaders and offers it to consumers, military, etc. This focus has established ...
Synergies and Pitfalls of market and product specializations are examined.