An article in this week’s Economist about Italian business clusters—that is, where businesses in the same industry form geographic clusters—offered some interesting observations. First, that traditional business models cannot survive global competition. A strategy to deal with global competition includes innovation and building brands. In short, diversification.
This led to a question: how does one approach diversifying architecture firms so that they, too, will be more able to weather economic vicissitudes? For that, let’s turn to Paul Nakazawa. Of course, there is the more “traditional” model of diversification: “many architects have several different kinds of SEPARATE businesses, which serves to diversify dependency on one source of revenue. The time-honored diversification scheme is teaching and practice — we all know lots of people who do that gig.”
More after the break.