The Growth Gamble

How to rekindle growth once the core market reaches maturity? Diversification is one means, but this book emphasizes the importance of validating the relevance of this solution on a case-by-case basis. Despite rather blatant self-promotion in presenting their analysis tools, the authors propose a wealth of practical advice illustrated with numerous examples. Any company considering a diversification strategy could certainly benefit from these tips.
– Based on many real-life illustrations, including McDonald's and Intel, the authors show how difficult it is to find a new business that can create profitable growth, and describe the prerequisites needed to do this in chapters 1 and 2.
– Probably the most original aspect of the book is the authors’ plea in favor of a more moderate attitude toward the pursuit of growth, described in chapter 4. For Campbell and Park, a company is better off settling for moderate or even low growth, than taking a chance on the uncertainties of an unfamiliar market. The meaning of this remark certainly becomes clear after reading the list of the pitfalls of diversification described in chapter 3.
– The book derives a large part of its value from the analysis tool proposed by the authors in chapter 5 to assess the chances of success of a diversification project.
– In addition, the last chapters offer useful recommendations on establishing a more effective idea generation mechanism (chapter 7) and defining organizational structures and performance metrics to ensure that the new business can peacefully coexist with existing businesses (chapters 8 & 9).