The "Eggs in One Basket" Dilemma: Diversify or Specialize?

Eggs are currently a hot topic and you've heard the saying: “Don’t put all your eggs in one basket.” Classic business advice, warning entrepreneurs and marketers against relying too much on a single venture, strategy, or revenue stream. The logic is sound—if that one basket drops, you risk losing everything.

But is diversification always the right strategy?

In marketing, being known for something specific is the key to success. If you try to be everything to everyone, you risk becoming forgettable to everyone.

So, which is it? Should businesses diversify or double down on one thing? Let’s explore both sides.

The Case for Diversification

The idea behind diversification is risk management. If one product, market, or revenue stream fails, others can keep your business afloat. Major brands like Amazon, Apple, and Google have built empires by expanding into multiple categories.

• Amazon started with books, but now it sells everything.
• Apple was once just a computer company, now it dominates music, phones, and wearables.
• Google began as a search engine but now owns YouTube, Android, and AI innovations.

Diversification works, but only after establishing a core strength. These brands didn’t start by doing everything—they became known for one thing first before expanding.

The Power of Specialization

While diversification can mitigate risk, specialization builds dominance. If you want to stand out in a competitive market, you need to be known for something specific.

• Nike → Athletic Performance & Innovation
• Tesla → Electric Vehicles & Sustainability
• Rolex → Luxury & Precision

These brands are successful because they focused on one area of expertise before considering expansion. In marketing, this principle is even more critical: If you aren’t known for something, you won’t be known for anything.

So, What’s the Right Approach?

Instead of choosing between diversification or specialization, think of it as a sequence.

1. Master One Thing First – Build a strong brand around a single product, service, or expertise. Be the best in your niche.
2. Expand Strategically – Once you dominate that space, you can explore related opportunities.

Key Takeaways:

• Clarity wins. Customers should immediately understand what your brand stands for.
• Start with one core strength. Own a category before expanding.
• Expand when ready. Don't diversify too soon or you risk weakening your brand.

The "eggs in one basket" advice isn’t wrong—it’s just incomplete. First, build the strongest basket possible. Then, and only then, consider adding more eggs.

What do you think? Would you rather focus on one thing or spread your risk?