Often I come across companies that have embarked on completely new areas of business, either because they have perceived an opportunity or they thought it would be good to conquer a new market. However, after the first flush of success, they come unstuck.
Management teams must realise that leveraging success in new markets comes from building n that which one knows. It is far better to seek out opportunities in fields where there is obvious synergy with an existing successful business. This approach, though guarded, can still bring rewards and will ensure that the organisation will not be left to the mercy of parasites who feed of others success.
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I've too have seen company's try to change their field. It's a bit like a sight impaired person trying to learn to drive - in theory the main elements are in place, but there is a clear barrier to a successful conclusion.
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