Bad economy? "Diversify! Diversify!" is the common battle cry. Good economy? "We want more growth--Diversify! Diversify!"

Ahhh, "Diversification"--I cringe when I hear that word.

A concept similar to diversification is convergence.

An example of convergence is the popular all-in-one printer, copier, scanner and fax machine. Four technologies converging into one product. The iPhone is another convergent technology (see the sidebar below).

There is a myth prevalent in all industries including the Green Industry in which people believe convergence is the key to business growth. Offer more products, more services, more features at more price points to more people.

Diversification and convergence is not the answer. Divergence (the opposite of convergence) and focus is the driving force behind the most successful companies.

Look to the retail industry for proof. Today, specialty retailers like Gap and Victorias Secret dominate department stores like JC Penney who once ruled.

The iPod, a divergent technology, revolutionized the music industry.

Divergence vs. Convergence

To illustrate this concept of divergence and convergence, let's look at a common scenario we see in the landscape industry using two fictitious companies--Lawn Boys Landscape Services and Smith Brothers Landscape Services.

Both companies currently offer the same landscape maintenance services: mowing, fertilization, mulching, pruning, weed control, etc.

Lawn Boys and Smith Brothers can grow one of two ways, either through convergence or divergence. Let's jump ahead 10 years in our time machine to witness how each company has evolved. First, Lawn Boys Landscape Services who has grown through convergence.

Now, let's look at Smith Brothers Landscape Services through the lens of divergence.

As you can see, ten years later these are two very different companies. One, a highly specialized organic lawn care company. The other, a company that offers all things to all people. While the Lawn Boys added services, Smith Brothers diverged and focused on one core service.

Specialists vs. Generalists

"Where is it written that the more you sell, the more you sell?" Al Ries, branding expert and author of Focus

This is where so many companies trip up. Just because a business can offer more services and more products does not necessarily translate into more sales.

With advances in technology and changes in lifestyles, consumers have become more savvy and have higher expectations. They want the best of everything--products, services and experiences. More and more frequently these consumers are looking to specialists like Smith Brothers who can deliver "the best".

Offering everything to everybody can actually alter how a company and brand is perceived from a quality standpoint. Generalists are more often perceived as being "average" than they are as being "great".

Highly diversified companies also face another challenge in that each division of the company competes for what it perceives to be its fair share of resources. Capital and management attention must be split among divisions.

If the Lawn Boys and Smith Brothers both annually budget $15,000 for marketing, who will more effectively reach their target market? You better believe Smith Brothers. The Lawn Boys will spend $15,000 trying to reach everybody and in the process will reach no one.

Offering more products, more services, more features at more price points to more people is not the key to growing a company. The driving force in business is division (divergence) and focus--building a strong position in the mind of the consumer. Who is Smith Brothers Landscape Services? Their an "organic lawn care" company. Who are the Lawn Boys? I'm not sure. And neither are consumers.