Briefly explain why a company that had a business model focusing on low costs might not want to engage in a strategy to offer more variety in their stores.
Business models that offer low-cost products generally do not want to engage in a strategy to offer more variety because of many reasons. One, they know the customers come to them for the low-cost products they offer not for the variety they should offer. So, they simply focus on low-cost strategy. Second, adding more variety will cost the companies a large sum that may further increase the cost. And customers would not want to come if low cost is not there for them. Third, adding more varieties require resources and capabilities that companies may not be having.
Briefly explain why a company that had a business model focusing on low costs might not...