The Internet has changed the world and has already turned many industries upside down. Innovative online providers are enjoying rapid growth, while consumers enjoy more and more offers.
Does your company also benefit from digitization? Have you been able to diversify your products and services?

The search for new opportunities

The importance of traditional media continues to decline, while specific online platforms are becoming more and more important and many media users are increasingly becoming media producers themselves.
Traditional business models are being shaken by media change, which is why the search for new opportunities and innovative diversification strategies is becoming increasingly important.

Why sharing is caring

Uber – The world’s largest taxi company does not own its own vehicles.
Facebook – The world’s largest media company, does not produce its own content.
Alibaba – The most valuable dealer in the world, has no stock.
AirBnB – The world’s largest provider of housing, has no hotels of its own.

Tom Goodwin, Senior Vice President of Strategy and Innovation at Havas Media

The quote from Tom Goodwin has been through international social networks. These companies are good examples of opportunities used in the digital world. The importance of sharing, which is organized via Internet platforms, has been growing strongly for years. Content and knowledge are not only consumed, but also shared. Goods are not only bought but increasingly lent (e.g. car sharing). Shared Economy is a clear, strongly growing trend and a big opportunity for many companies.

Discover new opportunities

Diversification is not just about increasing sales. It can also help you to minimize your risks. With the right diversification-strategy, you can expand your portfolio and secure your business. Learn more about diversification-strategies HERE.

A great example of successful diversification was Nokia. Originally Nokia mainly produced car tires. Later, they produced radios for cars and in the 1990s and early 2000s Nokia became the world market leader for mobile phones. They lost this position to Apple though, which remains a prime example of successful diversification to this day.

How to identify potential

  • Build a discovery team (and if so, why not start working with Scrum, an agile project management framework).
  • Find out what your business does well.
  • Find out what you do better than your competition.
  • Look at industry trends and insights.
  • Identify where you waste resources, skills, time and money.
  • Talk about where you can add value to your customers and potential clients.
  • Talk with and listen to your customers (What do they need and want? What are their challenges and frustrations with your industry?).
  • Discover how you can use your resources (better).

Why you should diversify

In the long run, a diversification strategy is better because:

  • You get more variety of products and services.
  • You will penetrate the market or tap into new markets.
  • Your company will gain more technological capability.
  • You reduce the reliance on one product or one market. And with this, you reduce your risks.
  • You likely have more output with the same fixed costs. Economies of Scale.

We can spend forever talking about different “what ifs”. Whether you are penetrating new markets, developing new products or services, expanding your portfolio or addressing new target groups. Diversification holds both: opportunities and risks.

Photos by Imthaz Ahamed, Frank Albrecht, Eirik Solheim