Vadim Kotelnikov

Diversification Strategies

Unrelated, Related, Synergistic

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon

 

 

Objectives of Diversification

The two principal objectives of diversification are improving core process execution, and/or 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.

 

Forms and Means of Diversification

Synergistic Diversification

Master of Business Synergies (MBS)

How To Discover New Business Opportunities

 

 

Vadim Kotelnikov

A business plan is not a box to act within, it is a seed to grow into a fruit-rich tree. Create additional value through creation of new businesses and their synergetic integration into the existing one.

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon

 

 

Forms of Diversification

Diversification typically takes one of three forms:

Vertical integration along your value chain

Horizontal diversification moving into new industry

Geographical diversification open up new markets... More

 

 

 

Means of achieving diversification include internal development, acquisitions, strategic alliances, and joint ventures. As each route has its own set of issues, benefits, and limitations, various forms and means of diversification can be mixed and matched to create a range of options... More

China diversifies to an entrepreneurial economy

 

Create a New Market Niche

Entrepreneurial Opportunities

Entrepreneurial Action

 

 

Vadim Kotelnikov

Keep your mind open to new strategic opportunities. Look wider. If you are focused to narrowly, you miss opportunities to explore complementary ways leading to your vision.

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon

 

 

New Market for an Old Product

Simple outside-the-box diversification and marketing ideas may bring big − sometimes huge − returns.

Examples

 

9 Maxims of Venturing

Diversify Your Income Streams

 

 

 

 

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.

Any core competence that meets the following three requirements provides a viable basis for your corporation to create or strengthen a new strategic business unit (SBU)

① The core competence must translate into a meaningful competitive advantage.

② The new business unit must have enough similarity to existing businesses to benefit from your corporation's core competencies.

③ The bundle of competencies should be difficult for competition to imitate.

 

Strategy

Strategic Management

Strategy Management

Examples of Diversification

e-Coach: Market Segmentation

Thermo Electron's Spinouts

Corning's In-company Startups

Charles Schwab

Turn Business Rules into a Story

 

 

 

   

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

 

 

 

Mini-courses

 

Your growth boosters

 

Teaching by Example