For businesses facing significant strategic challenges, who will not see growth and cutting costs isn’t going to make enough of a difference, then diversifying into new activities or markets, or both, is the only way forward.
Diversification can be a strategy that helps short-term, mid-term and long-term. We asked several hundred companies about this area, starting with a look at their sector.
As you can see 47% of businesses felt their own challenges were short-term and could be weathered. However, 35% felt that actually they had to make a long-term strategic change to what they were doing or who their clients are.
Next up we asked about their clients...
The results here are very interesting. 59% - a sizable group of the audience - said that their customers needed to make significant strategic changes to their activities. What do you think about your own customer segments? What will be the impact on your business based on this?
Lastly, we asked about capability to change. Have a look at the audience results.
So most businesses feel comfortable & competent enough to continue their activities but market and sell their products/services into different markets. You can find out more about this topic in the following resources...
Diversification Strategy Guides & Advice
Watch our Diversification Strategy Webinar
We ran a webinar on this subject covering:
- Exactly when diversification should be considered and the different degrees
- How to fund diversification from working capital
- How to decide what diversification options re right for your business
- Read our Strategic Diversification Guide
Read our Diversification Strategy Guide
Take a look through our guide to diversification with information on:
- Definitions of diversification
- Reasons to diversify
- Example success criteria
- Common challenges you may face
Diversification Checklists & Examples
- Read our Successful Diversification Checklist
- Check out some of the weirdest Diversifications