Vadim Kotelnikov

Synergistic Diversification

Integrating related diversification businesses

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon





Teaching by Example




Vadim Kotelnikov

Global success of this Business e-Coach laid the ground for synergistic diversification and helped me launch a bigger global innovation Innompic Games

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon





Why Synergistic Diversification?

The two principal objectives of synergistic diversification are:

① improving core process execution, and/or

② enhancing a business unit's structural position.

The fundamental role of diversification is for business architects to create value for stockholders in ways stockholders cannot do better for themselves. The additional value is created through synergistic integration of a new business into the existing one thereby increasing its competitive advantage.


Examples of Diversification

e-Coach: Market Segmentation

Thermo Electron's Spinouts

Corning's In-company Startups

Charles Schwab

Turn Business Rules into a Story





Capitalize on Your Core Competencies

Your company's core competencies things that you can do better than your competitors  can often be extended to products or markets beyond those in which they were originally developed. Such extensions represent excellent opportunities for diversification.



Strategic Management

Strategy Management




Examples of Synergistic Diversification




Lessons from Business Legends diversification strategies  


Jack Welch transformed GE from a purely manufacturing company into a more diversified company with an increasingly important service component. In his annual report, Welch wrote: "Services is so great an opportunity for the Company that our vision is GE that is 'a global service company that also sells high-quality products.'" ... "It's got to be a big combination... It's an integrated game."





Google acquires innovative companies to diversify Into new areas or to add value to existing technologies and services. Google acquired many companies all over the world. Thanks to these acquisitions the company created new profitable businesses as context advertising, mobile advertising, video advertising, Internet-boutiques and business e-mail.




British Petroleum

BP wished to measure the effectiveness of their horizontal well drilling processes. BP pooled their intellectual and financial resources with Schlumberger, the oil field services company, to build such a tool. The result was that BP got a tool that has taught them a lot about making horizontal wells even more effective, and Schlumberger got a new business.






Your growth boosters


Teaching by Example