Growth through adjacencies helps companies identify and rank promising opportunities for expansion that are outside, but closely related to, their core business. Adjacency moves offer one of the most effective ways for companies to achieve repeated bursts of new growth.

Bain's approach helps clients reduce the risks such moves entail by defining the core, evaluating its full potential, and determining which adjacent markets will reinforce the core and generate sustainable growth-and, just as important, which will not.

Two common mistakes derail adjacency moves: First, companies try to build on top of a weak core business; second, they overreach into new businesses that aren't truly related to their core business. Our tools help clients determine accurately which adjacent businesses will add the most growth and value. Companies can assess an adjacency's relationship to the core business by evaluating shared customers, channels, technologies, products and other factors.

We frequently counsel companies to avoid entering adjacencies and focus instead on strengthening their core business. Nevertheless, for companies enjoying leadership positions in their core markets, adjacency moves can lead to substantial new growth.  

To find out more about Bain's work in this capability area, please contact the practice.