Tech News
← Back to articles

Diversification can’t make a strategy problem disappear. It just creates a different problem

read original related products more articles

Why successful acquisitions are harder than you think. I keep coming up against a logical fallacy in strategy that I feel compelled to address. The logic holds that when a company has a shareholder-unfriendly component of its portfolio – e.g. the business in question is cyclical, or it is low-growth or low margin – the company should diversify to make that business less-shareholder unfriendly. I take on the fallacy in this Playing to Win/Practitioner Insights (PTW/PI) piece entitled Diversification Can’t Disappear a Strategy Problem: It Just Creates a Different Problem. And as always, you can find all the previous PTW/PI here.