In: Economics
Is it better for a company to produce only one product? Or is it better for a company to produce several products? Put differently, is diversification better than specialization, or is specialization better than diversification? Please explain why you feel this way.
It's important to consider your competitors and their goods when taking a decision like this. Evaluating your current business offering will allow you to decide whether you can diversify within your product or whether you need to grow into new areas. Creating a broader variety of goods will help you attract new customers so you need to ensure you have a plan in place to ensure this is successful. Exploring new offerings requires time and money so having a plan set up to ensure your core business continues to grow is important. Branching out would also involve new skills and you can maintain momentum by getting the right team of professional experience in place.
Research into the industry and customer is essential to knowing where the company can thrive. Choosing to specialize provides the ability for your company to position itself as the "go-to" provider for your operation. The provision of professional expertise helps you to develop a loyal consumer base and while there is still space for growth in your sector – your oyster in the world. Keeping up-to-date with the latest developments in your sector is important if you are skilled to give your customers useful insight. Looking ahead, auditing your performance to date will help you see how it can be continued and how you can build on points in the year.
Within your company diversifying or focusing will help you achieve new growth and raise sales. With that path, your entrepreneurial spirit will continue to prosper, and with so many opportunities for growth out there, it's important to make sure you weigh your choices and motivate your company to succeed.