How does the paint industry develop in multiple fields?

When I first came into contact with the paint industry, I was always puzzled by this truth. Because most paint companies did not follow this principle in earlier years, they put more resources in the same product area and intend to do fine work; for example, the paint industry has concentrated most of the paint companies, but they Seems to live more moist, some companies have thus completed the accumulation of capital.

However, truth still has its reason. Especially in recent years, with the change in the economic environment of the paint industry, most paint companies have finally realized the risk of placing eggs in the same basket – taking the home improvement paint market as an example, the market tends to be saturated and the growth of companies It is becoming weaker and weaker, and profits are declining. It seems that the situation in the engineering field does not seem to be so bad, and it is wondering whether or not to cross-sector development.

“Inter-field development” has become the mainstream of the paint industry. As we can see, many paint companies are stressing that they should put “eggs” in multiple baskets in order to balance the risk of operations. The “eggs” in this “basket” cannot be profitable, and can be made up for by the profit of another “basket”. It is always that there will be no gains or even losses.

It seems that is indeed such a truth; but, really?

In order for companies to develop across fields, the first thing to consider is whether their own capital, or the number of “eggs”, has reached the requirements of expanding the field of development. For the paint industry, the “basket” is enough. The problem is that if only a handful of “eggs” are available in an enterprise, only one “egg” per “basket” is still insufficient to cope with, and how can we expect to realize real profit.

Moreover, such an approach will undoubtedly dilute the company’s strength in each area, and ultimately lead to “weakness” in every area. Does this not increase the risk of business operation? Therefore, it is necessary to put the eggs in more baskets. First, companies are required to do what they can and count the number of their own "eggs."

Second, companies should estimate whether another “basket” is suitable for placing your “egg”. We have already seen such a case. A paint company in the home improvement field has gone beyond the engineering field. The result is that it is not specialized, and this has a great impact on the company's reputation in the engineering field. It is not possible that the "egg" that was placed in the "basket" of the project was so debased.

On the other hand, is it that we can only wait for the position to die? It must be pointed out that this is a misunderstanding. Looking at the industry, there are still companies that stick to their professional fields and there is still room for development. Imagine that when more and more companies allocate “eggs” to other “baskets”, it means releasing more market space; for defenders, it is undoubtedly a good opportunity to snatch.

In short, how to put "eggs" is an uncomplicated multi-choice question for paint companies. The difficulty lies in how to make the right choice based on the actual situation. Even if they choose to stick to their inherent positions, they are not necessarily "waiting for death." Enterprises have the opportunity to tap new market space through their own improvements. On the contrary, it is a radical adventure. There is a hidden danger of “seeking death”.