Besides the great work done by Collins and Porras, can you suggest any articles or sources of information that address this issue?

We are looking for pros/cons, risks/rewards for a small company considering expanding into a new (additional) line of business.

In this case, the new line of business is related to the current business, but branches away from the companies core mission and competency.

We have some leaders who believe this direction will provide a new and important revenue stream.

Any help would be appreciated. Thanks!

Bonnie,

Type industry....services or manufacturing...or both?

Jeff

The primary business is online news and information.

The potential seconday business is in a software application. It was internally developed and is a great product over what's currently available in the market.

Expanding lines of business and considering risks/rewards - Sounds like a marketing question/issue... have you considered contacting people/firms with that expertise?

This message has been edited. Last edited by: LoveLearning,

Thanks for the background.

I am certainly not qualified to go into the advice side of your topic...but can share some of the questions clients have tossed around when considering similar decision.

To what extent does this new LOB compliment or compete with our existing brand?

Where does it fit in our channel?

Is this a case of wanting to create a new brand or just take up more "shelf-space?"

Are there natural economies associated with keeping the apps side as part of the existing on-line services?

...Some have even mused about whether launching the new LOB was actually a transformative event....that would become more profitable that what currently exists.