The case explains how Victorinox, the manufacturer of the Swiss Army Knife, survived the 2001 crisis, which reduced its sales of knives in airports and planes to zero. The company continued a policy of diversification begun in 1989 after cheap knock off designs of the Swiss Army Knife flooded the market. Carl Elsner must now decide if the company should continue to diversify its portfolio of products or focus on its core competency.
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