[Solution]The Product Line: Extent and Mix

Although most firms produce multiple products, it is doubtful that all of these products could generate sufficient sales in a given foreign market to justify…

Although most firms produce multiple products, it is doubtful that all of these products could generate sufficient sales in a given foreign market to justify the cost of penetrating that market.
1. Sales and Cost Considerations. When making product line decisions, managers must consider the cost and effect on sales of offering just one or a few products internationally as opposed to an entire family of products. Whereas narrowing a product line allows for the concentration of effort and resources, the broadening of a product line may lead to distribution economies.
2. Product Life Cycle Considerations. Differences will likely exist across countries in both the shape and the length of a product’s life cycle. A product facing declining sales in one country may have growing or sustained sales in another.

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