Definition (1):
A company’s product/market scope defines the products and markets on which it will concentrate.
Definition (2):
Product/market scope strategies include decisions about which kinds of products business will offer and which markets the business will target with these products. Generally, building a product/market scope strategy begins with analyzing the business’s resources. Narrow strategies are fruitful for small businesses having limited resources for production and marketing. Wide strategies are good for bigger businesses with enough resources for handling broad product lines and wider marketing campaigns.
Definition (3):
“In determining the scope of the product-market, it is helpful to identify (1) the basis for identifying buyers in the product-market of interest (geographical area and buyer characteristics such as age group), (2) the market size and characteristics, and (3) the brand and /or product categories competing for the needs and wants of the buyers included in the product-market.”
First, the choice of product has an important impact on a firm’s business model. For example, Amazon.com started out as an online bookseller but has evolved to sell many other product lines, including CDs. DVDs, jewelry, apparel, and even groceries. Its business model has expanded to now include the challenge of managing relationships with a number of vendors and partners beyond those connected with books.