Under acute global competitive pressure, many companies have viewed
product diversification as a strategic weapon with which to win market
shares. Nevertheless, product diversification increases costs and
sometimes degrades product quality. Many businesses today confront the
dilemma of whether to broaden product lines or to focus production. This
article explores both theoretically and empirically the possible impacts
of product diversification. The emerging technologies and adaptive
manufacturing strategies, potentially meeting a variety of customer
needs while enhancing other competitive advantages, are examined.
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