Keeping in view how product mix is crucial for a company’s growth, it is critical to cater to consumers’ needs with rising trends. As product mix has depth and width so the categories that Starbucks expanded in its product line consist of 30 varieties (Bhaskar, 2009).
With growing economical and environmental pressures the competition gets tougher hence requiring brand extensions. For instance, Starbucks, been coffees, paraphernalia, pastries, oatmeal, smoothies etc.
Similarly, General motor increased its car manufacturing up to 60% and pruned trucks production (Langlois, Gelsi, 2008) to address product life cycle (PLC) issues. GM extended its product line of cars to respond ‘customers preferred variety’.
Furthermore, the company strives to produce more environmental and economical cars in future as quoted by CEP Rick Wagoner: Our goal is not just to return GM to profitability, but to structure GM globally for sustained profitability and growth. Since the first of this year, however, U.S. economic and market conditions have become significantly more difficult, (Langlois, Gelsi, 2008)
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