What is a disadvantage of an expansion strategy in product mix?

An expansion strategy in product mix often leads to increased complexity in both operations and management. When a company introduces new products or variations, it can create challenges in areas such as supply chain logistics, production processes, inventory management, and marketing. Each new product typically requires its own set of resources and planning, which can strain existing systems and lead to inefficiencies. This added complexity can also make it more difficult for a company to maintain consistent quality and customer service across its expanded product lines.

The option related to reduced market reach does not align with expansion strategies, as these strategies typically aim to broaden market presence rather than constrict it. Similarly, while expansion can lead to challenges in meeting customer preferences, it does not inherently result in lower customer satisfaction; rather, it could potentially enhance it by offering more choices. Additionally, expansion is generally intended to increase brand awareness through more product offerings, not reduce it. Therefore, the correct understanding of the disadvantages centers around the complexities that arise from managing an expanded product mix.