Contraction of the product

Entrepreneurship Development

Lesson 14 : Marketing

Contraction of the product

It is also known as elimination or deletion. It refers to the termination or withdrawal of a product. It becomes necessary because of reduced effectiveness, strong substitutes, decreasing price, etc under such circumstances; the management has to drop the production of unprofitable products. An entrepreneur may eliminate an entire line or simplify the assortment within a line. The organization can utilize its time, machinery, money and efforts in the production of some other profitable product.

Index
Previous
Home
Last modified: Tuesday, 31 July 2012, 9:54 AM