Organic diversification is a growth strategy that involves the development of new products and services through innovation and the use of the company's internal capabilities and resources.
In contrast, the 7th Playbook consists of creating start-ups from scratch with the objective of generating value through innovation and rapid growth by taking advantage of the "unfair advantages" of a large company.
The seven advantages of the 7th Playbook versus Organic Diversification:
- Lower risk: Organic diversification uses the company's resources and capabilities to develop new products and services. If unsuccessful, it results in a significant loss of time and resources. The 7th Playbook creates new companies with a lower risk profile, as external resources are used for their development.
- Greater market adaptability: Organic diversification is focused on developing new products and services through its own capabilities and resources. The 7th Playbook creates new companies by attracting specific resources to the new business that are more agile and adaptable to market changes.
- Ease of attracting talent: Organic diversification presents more difficulties in attracting talent because the company must compete with other large companies in the labor market. The 7th Playbook attracts talent easily due to the innovative and fast-growing profile of the new company.
- Time to Market: Organic diversification is subject to the rules and timing of a large company, including "antibodies". The 7r Playbook plays by the rules of a startup.
- Fewer resources: Organic diversification requires a greater amount of resources, as it involves the use of the company's existing resources and capabilities. The 7th Playbook requires fewer resources at the start, as it is based on creating a company from scratch.
- Less risk: Organic diversification implies a higher risk for the company, as it is investing in a new line of business using its existing resources and capabilities. The 7r Playbook is based on creating a company from scratch and does not involve investing the company's existing resources and capabilities.
- Experience: Organic diversification requires experience and knowledge of the company's existing resources and capabilities, as it involves using these to develop and launch new products or services. The 7th Playbook only requires experience in creating and developing companies from scratch.
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