What action is likely to increase the sustainability of a tractor sales business facing decreased sales?

Expanding into a line of small lawn and garden tractors is a strategic move that aligns with increasing sustainability for a tractor sales business facing decreased sales. This diversification can attract a new customer base and opens up additional revenue streams. By adding products that cater to a different segment of the market, such as homeowners or landscape professionals, the business can leverage existing resources and expertise in machinery while addressing current sales challenges.

This option also allows for scalability; if the lawn and garden tractor line performs well, it could compensate for the downturn in traditional tractor sales. Moreover, this could help the business tap into seasonal sales opportunities and benefit from local gardening trends, enhancing overall business resilience.

In contrast, expanding into agricultural parts may not directly address the sales drop, as the focus would still be on the same customer base that is experiencing decreased tractor sales. Increasing the advertising budget could lead to higher visibility but might not effectively convert potential customers without a compelling product offer. Changing the business location could introduce additional challenges and costs without guaranteeing an increase in sales, as it is uncertain if a new location would attract more customers. Therefore, diversifying the product line represents a more proactive and sustainable approach to overcoming sales difficulties.