Sometimes it was hard to know really what the core business of our company. For these difficulties, there is a simple tip although in its use is not always right but fairly accurate. Tip is intended to commemorate the past the company’s initial step, the beginning of the company’s core business. And this short article to show how a company’s core business is developed.

Initial step of a company are its core business. The majority of companies started by serving a good market using a single product or product line. The use of a single product in its presence provide specific benefits for the company but it’s really risky because it is too focused to serve the needs of consumers. This does not mean starting with the product line is recommended, but again left to limit the ability and resources of individual companies. Along with the success of the first step or the core business, any management decisions and products into other markets as a manifestation of the will to reduce dependency on the core business. Surely such a case, requires resources to support the development of the three alternatives that can be done. The first alternative, to develop core business by way of new products. That is done by extending the product being offered to the company’s target market by utilizing the opportunity of distribution channels, support and promotion of good research. The second alternative is to enter new markets. Actions, for other consumer groups who use the same product, or almost the same where this purpose the company has sufficient resources and also prosecuted against develop marketing strategy. The third alternative, is a means of diversification into new markets and products. Diversification many people talked about most at risk and is done by way of internal development and acquisitions. However, diversification is not denied interest if the market slow-growing core business, available resources, and product selection has been made. The success of diversification is dependent on market attractiveness, the cost of entry profitable, and there are opportunities increase competitive advantage. Thus developed the core business by way of new products, new markets, or markets and new products.