Reference no: EM132314654

Grips is a respected manufacturer of bicycle tires and accessories. After more than 18 years of making tires, tubes, and brake pads, the company is planning to extend its existing brand name to new product categories. The CEO favors this and points out the example of Apple, a company that successfully moved from computers to music players and mobile phones. The company's VP, on the other hand, feels that Grips should extend its product line to include slightly newer models of varying sizes and colors, made from different materials of better quality.

Which of the following, if true, most seriously weakens the VP's argument?

• Customers often find it difficult to choose from the multiple products currently offered by Grips.
• Grips has a strong reputation with hardcore cycling enthusiasts but is relatively unknown to most consumers.
• Grips has recently faced negative publicity and plans to repair its brand image.
• Grips would face a limited budget if it sought to establish a new product line.
• Grips currently does not produce products in the sizes most consumers prefer.