How does a narrow product mix benefit a company?

A narrow product mix benefits a company primarily by allowing specialization. When a company focuses on a limited range of products, it can streamline its operations and allocate resources more efficiently. This specialization enables the organization to develop deeper expertise in its product area, leading to higher quality products, improved customer service, and a stronger brand identity.

Focusing on a specific market segment allows companies to tailor their marketing strategies, innovate within that niche, and respond more quickly to customer feedback and changing market conditions. This concentrated approach often leads to better customer satisfaction and brand loyalty, as the company becomes known for its specific offerings rather than spreading itself too thin across a wide array of products.

In contrast, increasing costs, expanding market reach, and increasing complexity do not align with the main advantages of a narrow product mix. Such a mix typically aims to reduce complexity and costs while enhancing the company's position within its specialized field.