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Management

The Kamino Umbrella Company has been successfully selling only one, popular product: durable umbrellas with a wide variety of bright graphic prints and patterns on the umbrella. The vice-president of manufacturing is arguing to the CEO that because Kamino has excess capacity in their factory, they should make some basic, lower priced, umbrellas that are colored black or other muted colors and sell them to a wider audience. As a strategic analyst, which of the following is the best answer to this proposal to expand the product line. (Note: All the umbrellas will have carry the Kamino Umbrella Company brand).

Group of answer choices

No. Kamino’s costs will likely be too high when producing lower priced umbrellas to be very profitable.

Yes. Kamino’s brand should be exploited as an asset to expand the business.

Yes. Kamino will gain an advantage by growing in size.

No. Kamino should focus on reducing excess capacity.

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