I really like this post because it addresses one of the toughest questions a business can face… should we or should we not expand into new markets? If you have a competitive advantage that you think can be applied, you should. But too many times companies expand into areas they know nothing about and try to be all things to all customers – a sure way to fail. Some companies of course, do the opposite and only focus on their most profitable or highest profile customers. They leave profits on the table by not offering a broader product line. I don't follow the video game industry much, but at first glance it looks like Sega is making a good move.
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