Why would a business choose a contraction strategy for its product mix?

A business may choose a contraction strategy for its product mix primarily to focus on core products. This approach involves reducing the number of products offered by the company to streamline operations and concentrate resources on the most successful and profitable items. By honing in on core products, the business can enhance brand strength and improve customer recognition and loyalty. This strategy allows for more effective allocation of resources, such as marketing budget and production capacity, which can lead to better overall performance in the market. Concentrating on what the company does best enables it to establish a strong market presence with fewer, well-defined offerings that resonate more effectively with the target audience.