Have Companies Become Too Specialized? It's time for strategic diversification to make a comeback.

The article examines the trend of corporate specialization and argues that companies have become too narrowly focused, often at the expense of strategic diversification. It highlights how diversification allows firms to leverage underutilized assets, intangible resources like reputation, and cross-divisional innovation, using examples such as Philips and Euronet to illustrate these benefits. The authors contend that digital technologies have lowered the costs and increased the advantages of diversification, particularly through enhanced data utilization and partnerships. Consequently, the article suggests that the prevailing emphasis on specialization may limit firms' adaptability and long-term success in an increasingly uncertain and dynamic business environment.