A company’s product mix is more than just a collection of SKUs. It is a strategic decision that shapes brand perception, customer loyalty, and long-term financial performance. Businesses can approach their product mix with a deep product range, focusing on one category with multiple variations, or a wide product mix, spanning multiple categories.

Both strategies have their advantages. The key is knowing when to go deep and when to go wide.

Understanding Product Width vs. Product Depth

• Product width refers to the number of different product lines a company offers. A wide product mix suggests variety and convenience, serving multiple customer needs across different categories.
• Product depth is the number of variations within a single product line. A deep product range signals expertise and specialization within a niche.

Each approach comes with its own advantages across three core areas: marketing, market positioning, and financial performance.

Winning Strategies: When to Go Wide vs. When to Go Deep

Going Deep: Specialization Wins in Competitive Niches

Brands that aim for deep product ranges often focus on dominating a single market segment. This approach works well for businesses looking to:

• Build strong brand authority within a niche
• Encourage customer loyalty through continuous innovation
• Capture market share by offering comprehensive solutions for one need

Key Advantages of a Deep Product Range

• Marketing Advantage – Brand identity as a specialist builds strong customer trust and credibility. Consumers associate expertise with quality.
• Market Advantage – High customer retention and loyalty within a specific niche. Customers return because they trust the brand’s deep knowledge in that area.
• Financial Advantage – More stable revenue in the niche market, with potential for premium pricing due to perceived value and expertise.

Example: Dyson
Initially known for its vacuum cleaners, Dyson did not expand into unrelated products. Instead, it went deep, perfecting vacuum technology and later expanding into air purifiers, hand dryers, and hair care tools—all tied to airflow innovation. This specialization helped Dyson establish itself as a premium brand, allowing for high-margin pricing and strong brand loyalty. 

Going Wide: The Power of Diversification

On the other hand, companies that choose a wide product mix are often focused on capturing different customer segments and mitigating risk. This strategy is ideal for businesses that:

• Operate in volatile industries and want to reduce dependence on a single market.
• Want to cross-sell to existing customers.
• Need to expand their brand reach into multiple consumer needs.

Key Advantages of a Wide Product Mix

• Marketing Advantage – The brand is positioned as a one-stop shop, increasing visibility and attracting different customer segments.
• Market Advantage – Higher adaptability to market trends. If one category declines, the company can shift focus to another area.
• Financial Advantage – Revenue diversification ensures business stability, reducing dependence on one market.

Example -> Amazon
Starting with books, Amazon quickly expanded into electronics, apparel, cloud computing, and even grocery retail offering convenience. This diversification helped it dominate multiple industries, ensuring revenue stability even if one sector slowed down.

Business Lifecycle and Product Mix Evolution

A company’s product mix strategy should evolve with its business growth. Here is how successful companies adjust their product mix over time.

1. Startup Phase: Depth First, Then Expansion

Startups often begin by specializing in one product category to build credibility and market traction.

For example, Fitbit began with a single fitness tracker model, refining its technology and brand image before expanding into smartwatches and health data services.

2. Growth Phase: Expanding Depth and Testing Width

As demand grows, companies add more variations to their core products while experimenting with adjacent categories.

Consider the case of Tesla. It began with a single premium electric sports car, the Roadster. As brand recognition grew, Tesla expanded within the electric vehicle market (Model S, Model X, Model 3) before branching into solar energy and battery storage.

3. Maturity Phase: Balancing Width and Depth

Well-established businesses find an equilibrium, maintaining deep offerings in their core category while selectively broadening into new markets.

Apple started with computers but gradually expanded into MP3 players, smartphones, tablets, and wearables, maintaining deep product development in each category.

4. Optimization Phase: Streamlining for Profitability

When companies hit market saturation, they often refine their product mix by cutting underperforming SKUs and focusing on high-margin areas.

This can be seen in Netflix, which originally operated as a DVD rental service with a limited selection. It then expanded into streaming with a broader catalog and eventually shifted focus again, investing heavily in original content production.

From Depth to Width Is Not the Only Path: The Logitech Case

Logitech initially focused on a deep product range, specializing in mice, keyboards, and computer peripherals. Over time, it expanded into adjacent categories like webcams, gaming accessories, and enterprise video conferencing solutions. The company’s rapid growth during the pandemic, fueled by remote work, led to further diversification, including smart home products.

However, under CEO Hanneke Faber, Logitech is now streamlining its product mix, exiting less profitable categories like smart home cameras and doubling down on its strengths in computing peripherals, gaming, and enterprise solutions. This shift allows the company to refocus on premium innovation, integrating AI features, and exploring new business models, such as subscription-based software for peripherals.

By refining its product mix, Logitech is improving brand consistency, operational efficiency, and long-term profitability. This strategic shift positions the company for sustainable growth while maintaining leadership in work and gaming-related technology.

Finding Your Best Product Mix Strategy

How do you decide whether to expand width or depth? Consider these factors:

• Competitive Positioning: Are you competing by being the best in a category with a deep range, or the most convenient option across categories with a wide mix?
• Customer Behavior: Do customers want variety within a category, or do they seek a one-stop shop?
• Financial Stability: Do you need revenue diversification, or is market dominance in one category more profitable?
• Scalability: Can your supply chain efficiently support a wider mix, or does depth allow for stronger economies of scale?

Conclusion

Winning with product mix flexibility means understanding when to go deep and when to go wide. Companies like Dyson, Tesla, and Apple have built success through depth, while brands like Amazon and Logitech have leveraged a broad product mix. As seen with Logitech’s recent shift, adjusting product strategy based on market trends is key to long-term success.

For businesses looking to scale, balancing width and depth requires constant market analysis, a deep understanding of customer needs, and a willingness to pivot when necessary. The right mix today may not be the right mix tomorrow. Flexibility is the ultimate advantage.