Monday, July 03, 2006

Diversification Strategies

Well, Rhapsoder is definitely going to write about this. But, then I thought I'll add a few words too. So, people who read this here please read insights from Rhapsoder's blog too.

Our textbook on competitive strategy talks about Diversification and in the summary page it says that "Diversification is like sex". So here's what happens next when we add a little fun to diversification.

The critical issue for managers is to avoid the errors of the past through better strategic analysis of sex decisions. The objectives of sex need to be clear and explicit. Twenty years ago, sex strategies were based on vague concepts of synergy. At the same time, we recognize that economies of scope are insufficient to ensure that sex creates value.

No comments: