Diversification: some lessons from the UK defence industry Available to Purchase

In response to major changes in the defence market in recent years,many firms have embarked on a process of diversification into civilian markets. Examines some of the impediments to diversification based on the results of a postal survey of defence contractors in Devon and Cornwall. The results imply that problems related to the economic recession, a lack of marketing expertise and the cost of market entry are major hurdles to diversification. A case study of a local firm which has successfully diverisifed indicates that a change in corporate culture throughout the entire production, supply and selling chain is an important ingredient to success. In conclusion, notes that diversification is no simple panacea for companies suffering from the effects of declining demand from defence customers.