[Column] Development of New Businesses (2) The Principle of Entering New Businesses is the Bamboo Grove Method

I would like to introduce a column article.

The bamboo grove method literally imitates the way bamboo grows as a thicket. It revolves around considering the current industry or sector one belongs to, as well as related industries and surroundings. It also involves assessing whether there are promising business opportunities that can leverage existing human resources, technology, sales channels, buildings, and equipment. In other words, like a bamboo grove, it involves developing businesses that are related in some way, branching out from a single root. This approach is low-risk and does not lead to significant failures. The points to keep in mind in this case are as follows: (1) Develop based on areas where strengths and expertise can be leveraged. (2) Assess whether idle assets (land, equipment) and human resources can be utilized. (3) Determine if the industry planned for entry is a growing sector or a niche area that large companies do not venture into. (4) If entering as a latecomer, investigate whether the leading competitors in the same industry are generating profits. (5) Consider whether there are synergistic effects expected with the main business. (6) Assess the extent to which human resources and investment can be utilized. (7) Identify whether assets such as land, buildings, and employees from previous businesses can be leveraged. Exploring the possibilities of upward, downward, and lateral expansion based on this bamboo grove method, centered around the current business, forms the foundation for new business development in small and medium-sized enterprises.

Management SeminarManagement Seminar