Evaluating Strategic Options for Product Diversification

Hard Industry And Company Analysis Company Analysis

A large multinational company in the consumer goods sector has been experiencing declining market share despite a stable overall market growth. Analysts have noted that the company’s flagship product line, which generated significant historical sales, is facing rising competition and shifting consumer preferences towards healthier alternatives. In response, the company is considering diversifying its product range and investing in innovative marketing strategies.

As an equity analyst, you are tasked with evaluating the company's strategic options for reviving growth while considering the financial implications. You must assess whether the company should focus on:

Continuing to invest heavily in the flagship product line to regain market share, regardless of market trends.

Diversifying into health-oriented products, which align with current consumer preferences and market trends.

Reducing overall product offerings to concentrate on a few high-margin products that may not appeal to current market demands.

Hint

Submitted3.3K

Correct2.0K

% Correct60%