; how and why does a company like yamaha produce and manufacture professional grade music equipment and professional grade boat engines, two completely different things?

Question

Like you don’t see Gibson branded cars.

In: Economics

Answer 1

In a more generic sense, businesses can either operate in a “vertical market”, where they make one thing and if they are very good at it, they will be successful. They don’t necessarily feel they need to do other things. Other businesses on the other hand like to do multiple things. If one segment has an economic downturn, the other segments can help keep the business going.