Strategic Focus vs Business Diversification
Embed supply chain continuity planning under ISO 22318 to justify strategic redundancy as a risk-management obligation, not operational waste.
CyberTRIZ analysis · CognitiveBias contradiction E021 · one of 8,235 worked contradictions published by CyberTRIZ.AI
Regulations
Business Context
Organizations benefit from maintaining a clear strategic focus, but excessive concentration on a limited number of products or markets may increase vulnerability to changing economic conditions.
CognitiveTRIZ Resolution
Balance strategic specialization with selective diversification based on objective market analysis and organizational capabilities.
Recommended Principles
Principle 9 -Hierarchical Analysis
Principle 16 -System Thinking
Principle 22 -Adaptive Thinking
Expected Outcome
Better strategic resilience
Reduced concentration risk
Sustainable growth
Improved competitiveness
Decision Indicators
Early indicators that strategic focus may be creating excessive concentration risk include:
Revenue depends heavily on a limited number of products or markets.
Executive discussions rarely evaluate diversification opportunities.
Market changes have an increasingly significant impact on business performance.
Investment decisions consistently reinforce existing areas of specialization.
Risk assessments identify growing exposure to sector-specific disruptions.
Recognizing these indicators helps organizations balance strategic specialization with appropriate diversification.