Branching Out
For faster growth, take what you do best to a whole new level.
By Mark Henricks • May 5, 2006 Originally published Feb 2, 2004
Opinions expressed by Entrepreneur contributors are their own.
In his last book, Profit from the core: growth Strategy in an Eraof Turbulence (HBS Press), management consultant Chris Zookadvised entrepreneurs to squeeze every atom of growth from theircore businesses before diversifying into new markets. Now, inBeyond the Core: Expand Your Market WithoutAbandoning Your Roots (HBS Press, $29.95), Zook shows whatto do when your core simply isn't growing fast enough to keepyou afloat.
The basic play here is the "adjacency move"-going intoareas away from but still related to your core business, such asnew product lines or distribution channels. As described by Zook,adjacency moves are less risky than outright diversification. Andbecause they leverage your existing competitive strengths, profitsare likely to be higher as well.
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