The prevailing philosophy has been to concentrate operations. In other words, “do what you are good at”. Conglomerates are now taboo. At the same time, there is a tendency, in the convenience goods business, for instance, to want big suppliers who can delivery large quantities of goods in order to limit the number of suppliers. The automobile industry follows the same model.
Perhaps the operating areas of standard industries are currently in a period of “zero growth” and not expected to grow in the foreseeable future. Should one then turn to new areas of operation, and if so, which ones?
We have executed many large projects of this sort, in which we identified new potential growth areas for a company. On occasion, our conclusions also led the company to refrain from making an investment.
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