Apply the core competencemarket matrix to derive different diversification strategies.

When applying an existing/new dimension to core competencies and markets, four quadrants emerge, as depicted in Exhibit 8.9.

The lower-left quadrant combines existing core competencies with existing markets. Here, managers need to come up with ideas of how to leverage existing core competencies to improve their current market position.

The lower-right quadrant combines existing core competencies with new market opportunities.