Why is diversification such a minefield?

People hear the word diversification on its own and immediately start to think, gotta do something new, at any cost. That means that they start to get into new products and markets that they don’t really understand too well.

The words that I like to associate with diversification are next-step and logical. They help to focus companies on what they are great at so that they can better understand what they can or should do next. Apple is a really good example for knowing what they are great at – design-driven, personal technology – which has helped them move from computing to i-pods, the i-phone and now the i-pad.*

-Ken Tencer

*Adapted from an interview on The Business Coach, Episode 77 on Business Expansion Strategy at http://www.profitguide.com/podcast/532–podcast-77-business-expansion-strategy

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