The Downside of Diversification

Leveraging programs, products, and services is a tremendous opportunity. Deriva- tives or spin-offs can expand your reach, while enabling you to meet your mission and margin objectives. They can even outperform the parent product (see my December 1998, March/April 1999, and June 1999 columns). But, while extensions often seem like a safe bet, the odds of winning may be longer than they look.