Diversification is not without its challenges. Some of the common hurdles include:
- Resource Drain: Diversifying can strain a company's resources, both financial and human. - Cultural Resistance: Employees may resist changes, especially if they are deeply rooted in the company's existing culture. - Market Misalignment: There is always a risk that the new product or market may not align with the company's strengths or customer expectations. - Operational Complexity: Managing a diverse portfolio of products or markets can increase operational complexity and require robust management systems.