In his Forbes.com blog post this week, Jesse Lipson discusses the benefits of staying focused on the one thing you do best when considering ways to expand or grow your business.
Using a Santa Barbara butcher shop’s foray into Thai food as an example, Lipson notes that a good argument can often be made on paper for adding new products and services, but stretching your business too far might just confuse customers.
“I can imagine an MBA presenting a business case for adding Thai food to the butcher shop’s menu, looking at the relative flattening of demand for butcher shop meats and the impressive compound annual growth rate of the ethnic food category,” Lipson writes. “But in practice, expanding your business too far afield confuses and alienates your customers and dilutes the power of your brand.
“When you add a product or service that has little connection to your core business, you’re signaling to your customers that you are no longer focused on doing one thing better than anyone else.”
Read the full article on Forbes.com https://www.forbes.com/sites/jesselipson/2013/07/11/cold-cuts-pad-thai-and-lessons-in-business-strategy/, and follow Lipson’s weekly posts at https://www.forbes.com/sites/jesselipson/.