Too much Too much Diversification Is Bad Thing
Diversifying your investments as well your products and services can allow you to to tap right into a broader market share, it can assist to cut back your financial risk by spreading it over multiple ventures, and it may help to grow your wealth more quickly.
But, too much diversification can be a nasty thing. It means that you reduce your laser give attention to the thing that you do best (and what makes you unique). While you may gain a broader market share, dappling in too much may leave you or your company too focussed on the peripherals so you’re unable to deeply penetrate any of those markets.
Learn from market leaders who’re re-focussing on their UQ Factor – their core business
It’s time to follow the market leaders and focus on your UQ and on core business things such as culture, operations and leadership development. BHP and Woodside Petroleum scrapped plans for investment and cut costs by specializing in core business strategies. Rio Tinto’s new boss Sam Walsh has been very active in his short term as CEO and has cut capita spending and taken action against poor investment decisions such because the acquisition of coal assets in Mozambique, Alcan in Canada and now domestic coal services corresponding to Coal & Allied.
Coal & Allied was only oil prices monthly purchased 18 months ago but Rio is seeking to diversify its holding and sell a 29% stake in the business which operates mines in the Hunter Valley, together with its Blair Athol and Clermont Mines in QLD.
Cutting non-core projects and services allows Rio Tinto to concentrate on what it is best at (its UQ factor).
Focus on your UQ – the thing that makes you unique
In a crowded marketplace, it’s imperative that you just stand out to survive and thrive in business. To stand out, you must be unique. Whether it’s the way you think, act, or communicate, focus on that one thing you do best in an effort to drill past the surface of your market and deep down into the foundations of it.
What areas of your enterprise or investments are taking over plenty of energy with little return What’s your one thing that makes you unique and how are you able to leverage that to face out and achieve a deeper market share
Sometimes, closing a door can open up new, oil prices monthly bigger opportunities.