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Explain five factors that would influence a firm to venture into producing new products

      

Explain five factors that would influence a firm to venture into producing new products.

  

Answers


JOY
some of the factors that can influence a firm to venture into a new product include:
1. Customers demand: if the demand for a certain product is high then a firm may be influence to venture into the new product
2. Availability of raw materials: i a situation where the raw materials for provision of the new product is available then the supplier will go for the new venture
3. Level of competition: in a situation where the firm is engauging in production of a product facing high competition in the market, they may be convinced to venture in the new venture if it has less competion than the current product.

4. Profitability: a firm may find new venture a better option also if it is yielding more profit which will help them meet its objectives since every business has a purpose of making profit.

5. Cost involved: in a case where the cost of going for the new venture is less than the cost involved in maintaining the product that the firm is currently producing is less then a firm will prefer getting in the new venture
JPTE answered the question on March 16, 2018 at 14:55


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