Amazon plans to sell computing power like a utility company sells electricity. Google is building a suite of productivity software programs connected to the web to take on Microsoft. And Yahoo has launched or acquired so many properties that they run the risk of competing with each other. Such efforts could represent new growth areas and smart diversification moves. Or they could prove to be costly distractions. The big question: Should a company stay focused on its core competencies or should it diversify to keep up with or attempt to surpass its peers?
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