What are the advantages of product based organisation structure?

Four advantages of a product based organisation (briefly listed)

(i) This structure gives focus on individual products, which may be especially appropriate if different products have different problems and concerns.

(ii) Each group can be run as a separate profit centre. This way, healthy competition and rivalry can develop between 'teams' which can help motivation and productivity.

(iii) It is also flexible in that poorly performing groups can be closed down without too much disruption to the rest of the organization.

(iv) These smaller profit centres allow for rapid decision making and greater independence

In addition, using a product organization structure is most common in companies such as retail stores. These organizations will separate out their products by group, such as apparel, appliances, food or electronics. This helps owners and managers run their operations more efficiently (so thats probably another advantage; efficiency