How does limiting a company's scope benefit the company?

It makes it easier to produce a high quality product.

A company’s scope is made of its intended customer base, location, and product. The smaller the scope, the better, especially for a small or start-up company. For instance, if a company focuses on just one product, the company can devote all resources to that one product. A company would need to begin dividing resources the more products it chooses to develop. Additionally, to focus on just one demographic means not having to divide resources to focus on more than one group of people when advertising. Thus, limiting a company’s scope will certainly benefit a company and keep it from overextending resources.