Why do companies keep an unprofitable product line

The paper ” Why Do Companies Keep an Unprofitable Product Line” is a wonderful example of an assignment on business. Keeping an unprofitable segment or product by a company comes as part of the general marketing strategy that the company employs to get its other products recognized and marketed. For this reason, many companies will maintain the segment or product. The strategy to maintain a product proving unprofitable may also originate from the level in the product lifecycle that the product may rest at. These may provide a choice to the marketing team on which products to discard and leading to the maintenance of some on the line despite their non-profitable nature. As part of their strategies, companies may decide to keep a product whose profits have dwindled marginally or very unprofitable. Some products work in trends. Marketing them best in times of low markets will not yield much but letting them through this time to the season in which they yield returns may provide the company with a reason to maintain the product on the market. Brand loyalty may also provide another reason for a company to maintain its product on the product lines despite its failing returns (Petersen). In a quest to retain the customers that support the product and consider it worth, the company decides to continue holding the products on the market. One of the major fails in product terms for Microsoft was the development of the Zune product. This was a portable media player produced in 2006 facing major challenges with the major as the comparison it faced to the iPod that failed to capture the market. Even with the declining sales of this product, Microsoft maintained it on the market until they realized and continued producing other products that worked better compared to it.