Should companies focus solely on their core business or expand? "How companies answer that question is very important," says Chris Zook, head of global strategy at Bain & Company and author of a new book on growth strategy, Profit from the Core
. Zook's theory is that the correct answer for many managers is to concentrate of the key business.
Zook's book offers a convincing explanation of why a strong central business is such a vital foundation for company growth. It also provides a guide to understanding where a firm's core business lies, when to focus on that key strength and when to pursue other opportunities, and how to respond to market changes such as fresh competition or declining demand.