The Convergent Diversified Business Strategy
The world is currently in an increasingly competitive and dynamic business environment. Companies must look to be more innovative and leverage their unique capabilities to drive the competitive advantages and growth that is needed to succeed. The Convergent Diversified Business Strategy is an approach that leverages multiple high-value business activities to drive overall growth and profitability.
The strategy involves focusing on high-value capabilities that are core to the company, and leveraging other businesses that have complementary resources and capabilities. The premise of this approach is that a business should focus on a few core competencies and distinguish itself in those areas where it can gain the most competitive advantage. This approach allows a company to diversify its activities and products to generate the greatest returns on investment.
The first step in the Convergent Diversified Business Strategy is to identify and prioritize the core capabilities that are essential to the success of the business and determine what complementary capabilities other businesses can bring. This process should involve an analysis of the company’s current capabilities and an assessment of any new capabilities that can be leveraged from other businesses. Once the core capabilities are identified and prioritized, a plan to develop the capabilities and determine which other businesses may be able to add value must be established.
Once the core capabilities and any new capabilities needed to develop them have been identified, the next step is to determine which businesses can add complementary resources and capabilities. This process should involve a careful assessment of each business to determine its ability to provide the needed capabilities. Furthermore, the assessment should include a review of the financial health of the businesses and a comparison of their capabilities to those needed to complement the core capabilities of the company.
Once the supplementary businesses have been identified, the next step is to determine how those businesses can be integrated into the company. This process should involve an analysis of how the businesses will fit into the company’s current business model, as well as how they can add value. To ensure that the merger is successful, it is important to establish a clear vision for the future of the business that takes into account the complementary capabilities of the other businesses.
The Convergent Diversified Business Strategy is a comprehensive approach that offers a number of benefits. It allows a company to focus on its core capabilities while leveraging other businesses to complement those capabilities. Furthermore, the strategy can help to reduce the risk associated with launching new products or services, as the resources and capabilities of the other businesses can be leveraged to ensure a successful launch. Finally, this strategy also helps a company to stay competitive in an ever-changing business environment.
The Convergent Diversified Business Strategy is an effective approach that can help a company to stay ahead of the curve and gain a competitive advantage. By focusing on its core capabilities and leveraging the capabilities of other businesses, a company can create a comprehensive approach that yields higher returns on investment and greater success.
