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But how can that be It seems so logical that you should concentrate on either high- or low-cost products for either the whole market or a market segment, rather than spread yourself around. But Campbell-Hunt s results do not argue against concentration. Porter picks two elements to concentrate on: product cost and market segment. But there are many other elements that a firm could concentrate on. Those other elements might be just as important, or more so. For example, one such element is product quality. High-quality products might fit into any of Porter s three generic strategies. Maybe high quality is the key to successful strategy. Perhaps low cost of operations is key, whatever your market or product mix. Most likely, a mix of elements fits your situation. Porter s two elements are important, but so are all the others. Let s look at a third study of the results of competitive strategy, this time from Porter himself. In a 1987 article, From Competitive Advantage to Corporate Strategy, Porter reports the diversification record of 33 major U.S. companies from 1950 to 1986. He calls it a sobering picture. The firms were not just stuck in the middle. They went here and there, all over the place. We find that each of the 33 companies entered an average of 80 new industries and 27 new fields. This is a staggering figure. That s more than two new industries per year for every company. How did these companies find time to do anything else Worse,

Standard disc tumbler locks (those using a single-bitted key) take the same picks as pin tumbler locks. Like the pin tumbler lock, a disc tumbler lock can be picked by bouncing the tumblers to the shear line. Usually a rake is the best tool for this job, but other picks can be used too. To develop your proficiency, try opening a disc tumbler lock with the feeler pick, working on each tumbler individually. This helps you to learn which picks you are most comfortable with for different types of locks. When working on double-bitted disc tumbler locks, the bounce method is best. Insert the tension tool into the keyway, and apply a slight pressure to the core as you pull the pick out of the lock. These locks also can be opened with a standard pick set and tension tools, but it can take from 10 minutes to half an hour. Picking High-Security Cylinders All cylinders that use a key can be picked open. High-security cylinders often are harder to pick than a standard one because they have patented features and require special tools and techniques.

they made these entries mostly through acquisitions. And the acquisitions failed:7

My data paint a sobering picture of the success ratio of these moves. I found that on average corporations divested more than half their acquisitions in new industries and more than 60% of their acquisitions in entirely new fields.

To pick an ASSA cylinder, you ll need a key blank that fits the cylinder. Cut off most of the length of the blade to give you room to pick the tumblers. Then use the blank as a turning tool while picking the cylinder.

Note how Porter measures success: retention. If you take on a new company and then get rid of it, that s failure. Porter says that shareholder value is not a good indicator because there s no way to compare. You can t know what shareholder value might have been without diversification. And so Porter makes his own measure of diversification success by noting how many of the units it developed or acquired the company retained. That s as good an indicator as any. On the one hand, this seems like a good guess. Adding units and then dropping them would seem to be bad business. On the other hand, Porter s data can t tell us whether this is true. He can tell us about the adding and dropping, but not about the business results. But let s accept Porter s judgment: He s the scientist who knows this field, and he thinks retention is a good measure. In other words, let s trust his expert intuition. Note too what Porter leaves out. There s nothing about the five forces or the three generic strategies. In this article, Porter just wants firms to concentrate. He almost doesn t care what they concentrate on. Once again, he throws in good advice along the way. For example, his data show that a company s own start-ups fare better than acquisitions, like a tree sprouting new branches instead of the trauma of grafting them on: