The reliance of a company on too few products can increase their risk to any one of their big products. Risk can come from government actions, safety concerns, supply problems and output problems. These increased risk cause the cost of capital to increase and the value of the firm to decrease.

Company Specific Comments:
MAT: Mattell relies on barbie toys for the majority of their revenue. This could poss additional risk for their business. … This qualitative factor will lead to an increase in costs. "Reliance on Few Products" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.