Diversification in Emergent Markets: Possibility for Transferring Technological Core Competencies


The company (name disguised) started out as a coppersmith workshop over 100 years ago and is today a leader in the technology of plant engineering and construction for the beverage industries. However, competition has increased heavily in this area over the last decade, while advances in knowledge have correspondingly declined, particularly in producing technology systems, and there is now a discernible knowledge gap. In addressing this situation, the company has recognized that the business must find other markets and its technology core competencies, as well as the existing manufacturing facilities, should be a part of the evolving business. The diversification should be based on new products as well as focused on emergent markets. The case points out the need to identify current core competencies and assess relevant fields of potential diversification from an outside-in perspective as a realization of the first steps in establishing a completely new business portfolio in the long run.

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