Is diversification the better concept for companies today?
For the past five years, as an entrepreneur, I have struggled with the challenge of specialization. But 2020 is the year in which I have to realize that it is not that bad to be as broad as possible.
Why did I get the idea that my company should specialize in the first place?
The popular belief is that specialization leads to unique selling points and expert status. And that’s true too. The opportunities to stand out in the market and to differentiate yourself from the competition bring great advantages. Especially with regard to the price of one’s own service or product.
This specialization can, for example, concern a certain industry or target group. But this is exactly where my problem with this topic has been for years.
II’ve always appreciated the creative freedom, diversity and flexibility of my job as a designer. I question boundaries rather than impose them on myself. I understand the business value of specialization in monetary terms. Of course, I want my company to be unique. But not at the price of limitation.
What are the advantages of diversification?
With a look at a growth and risk policy, diversification is a way of minimizing the risk for companies. What is true in the financial and stock market cannot be fundamentally wrong for companies.
As a design agency, my company, braindinx GmbH, is still relatively broadly based.
B2B is not really a specialization and branding is relatively broad. We cover two large areas with our options in web development and graphic design. In addition, there are advertising media and advertising technology, photography, video, social media and SEO. In short, everything a company needs on the market today to be visible at all touchpoints.
And it is precisely this broad structure, the diversification, that helps us enormously in difficult economic times.
The company model that I am currently following is that of a brand agency. The name brand agency or agency for branding sounds really very bureaucratic and not very creative. That’s why I just like the American version much better.
The term describes the model and the focus of action of an agency. As the name suggests, the focus is on the brand – the brand. With my agency, we have a clear focus on the concept, the structure and the sustainable communication of your brand. Starting with the concept, through the target group, brand attributes to strategy and design. That is exactly the core of our work.
As a brand agency, we can do a lot more for our customers through diversification. By networking with highly specialized partners, we can build up and expand your brand in all relevant specialist areas. The principle “Design Thinking” is always an important basis.
An important added value for our customers is that we take on the complete processing of all orders. In this way we ensure that the brand, brand attributes and target group as well as corporate design are adhered to and taken into account.
The decisive difference to the full service agency is that we do not map all service areas ourselves. This is how we ensure that we achieve the highest quality results, because we can bring in the best and most experienced partners for the project when the need arises. The whole thing happens for our customers without any additional effort in communication and coordination. Diversification does not necessarily mean that there is no highly specialized management by experts.
So there is no specialization and no unique selling proposition for us?
All of these considerations made something very important to me. When trying to specialize, I only looked at the “what”. What do we do and how can we specialize here.
It makes much more sense to look at the “how” and even more closely at the “why”. Here are real USPs that I can put into words better from day to day. It is a process and a challenge that every entrepreneur will probably face one day.
I would be very happy if you let me be part of your process. Please write to me.