Erik is a sales representative for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Erik can market his current products only to his current customers or

Since Erik works for a company that apparently is not going to expand its product line, then he will only be able to sell his products to existing customers that want to buy the same product and to new customers that are interested in buying the already existing products. Erik's possibility of expanding his total sales is small since his regular clients will probably keep buying the same amounts and new customers are generally scarce specially when you don't offer new or different products.