It is almost as if most growth strategies harbor a dark, destructive
force that causes companies to reduce their focus on their core business
and thereby to depart from the basis of their real differentiation.
Consider the following questions: Why did Sears enter financial services
while its once-dominant retail franchise was eroding? Why did
GM purchase Electronic Data Systems when it was under the greatest
pressure in its core automotive business? Why did Compaq Computer
invest to buy Digital Equipment Corporation at a time when
its core PC and server businesses were under the most severe attack
from one of the toughest competitors on earth? These companies are
run by smart people who must be familiar with the body of evidence
proving the power of business focus and the need to outinvest competitors
in their core business. So what happened?