Focus

January 1, 1996
While he doesn't go so far as to say that small is beautiful, Ries (Positioning) levels a commonsense critique at the compulsion for growth that drives corporate America. Growth for its own sake, particularly when it involves diversification into products unrelated to a company's original business, Ries says, causes many companies to become unfocused, confuses customers and loses money. The frenzy for acquisitions that spread many a well-known brand name over a diversity of products has proved untenable, with the result that companies that grew fat are regaining their original focus by slimming down. Sears, Roebuck, a once focused retailer that expanded unwisely into real estate, stock brokering, business system centers and credit cards, is having to divest itself of all but its original retail chain. Managers seeking to focus or refocus their companies will find helpful examples here, drawn from a broad range of enterprises. $50,000 ad/promo; author tour.