Product approach - Advantages and disadvantages table in All Levels Business Studies

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Created by: IloveReading123
Created on: 04-03-22 19:17

Product approach

Advantages

Allows the business to focus on products-concentrate on their own thing
Creates competitiveness within the business (internal) - want to be the best product area
Each product can be a separate profit centre (source of profit)

Disadvantages

Tends to create wasteful duplication in some areas
Lack of central control
Too much focus on internal competition, may potentially lead to a lack of focus on the external competitors

Evaluation

The product approach takes the opposite approach, creating an output to meet existing demand. As a result, businesses that use a product approach must compete on pricing.

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