This podcast discusses the importance of de-risking and diversifying businesses in today’s interconnected and volatile world, based on writings of Global Strategist, Sophie Krantz. The episode emphasises that expecting stability is a risky delusion and businesses should look beyond borders and traditional business models for long-term resilience.
Key points covered in the podcast include:
The benefits of diversification:
Risk reduction by pooling unsystematic risk and decreasing dependence on single revenue streams.
Improved financial performance as indicated by research showing that diversified companies often outperform undiversified ones.
Market expansion and growth by reaching new customer segments and markets.
Increased company valuation as a diverse portfolio signals robustness and adaptability to investors.
Innovation and competitive edge by encouraging companies to explore new products or services.
The different types of diversification strategies: concentric, conglomerate, and horizontal.
The shift from tangible to intangible assets in diversification through the use of digital platforms.
The importance of building a global network for insights and collaboration.
Practical steps for implementing de-risking and diversification strategies, such as leveraging intangible assets, strategically expanding into new markets, and engaging global partners.
The podcast concludes by highlighting the importance of proactively de-risking and diversifying to secure long-term success in a world of inevitable global disruptions. It encourages listeners to see the world, set smarter strategic priorities, and secure sustained success.
When you change the way you see the world, you change the way you can shape it.
*Season one of The Global Edge podcast with Sophie Krantz is AI generated. Season two, launching early in 2025, will be hosted by Sophie Krantz.
