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Company executives may decide to discontinue their products for several reasons, but the primary reason is it that continuing to produce the item is no longer profitable.
Other reasons may include, but are not limited to, the following:
1) There is no longer a demand for the item. Another competitor may have developed a substitute that is cheaper and/or better quality.
2) The raw materials (the items used to make the product) are no longer available or are prohibitively expensive. If the raw material price goes up and the company is unable to raise their price to compensate, it does not make financial sense to continue making the product.
3) A new product has been developed to replace the existing product. For instance, automotive manufacturers do not make Model Year 2001 vehicles in 2005.
The primary reason for any major managerial decision is because it either does or does not make financial sense to continue or discontinue making a product.
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Continue genuises!
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What is a sentence for discontinue?
They decided to discontinue the product due to declining sales.
