Industry specialization is not a new thing. It’s one of the factors that has driven innovation, and operational efficiency since the beginning of the industrial revolution. Today, industry specialization still stands as one of the best strategies for growth both for companies and individuals. To help better appreciate specialization, here are the benefits of specializing in a specific industry.
1. You build brand equity
It doesn’t matter whether you have a manufacturing company, or an individual offering consultancy services. How people perceive you is key to growth. People need to associate your name or company name with a certain product, or quality, for you to succeed. The best way to achieve this through specialization. For instance, when someone comes across the name Elite Tapes, the first thing that comes to mind is good quality double-coated tapes. The company has achieved this because it is specialized in tapes, and has even tailored its website, elitetape.com around these products. Other companies that have achieved significant growth due to specialization include Coca Cola and PepsiCo.
2. You become more efficient
When you specialize in a specific industry, you get to understand it in-depth. This gives you the basis to come up with new ideas that can help improve operational efficiency, and customer service. You can’t achieve this, if you keep hopping between industries, or are so diversified that you have a real understanding of what you do. Companies that have made significant progress have done it because they are specialized. When resources are focused on a single endeavor, good things always come out of it. A perfect example of this would be Jonathan Ive. He has specialized in industrial design and is the person behind the designs for Apple’s top-selling products. By specializing in this industry, he developed an eye for amazing designs, something that has made him an icon in the industry.
3. You cut on risks
Business always comes with risks. What separates winners from losers is how they manage those risks. One of the best ways to manage risks is to specialize. That’s because, by having an in-depth understanding of an industry, it becomes easy to identify potential risks before they happen, and also mitigate their consequences. A simplified example would be a bus driver who takes the same route every day. Such a person knows the road well, and is likely to be more aware of potholes, sharp corners or other hazards that may cause an accident. They have a lower risk of an accident, than a random driver using the same route. This is representative of all industries no matter how complex.
4. You develop the right networks
This mainly applies to professionals. When you are specialized in one line of work, you naturally begin to associate more with people in that industry. Such networks can help you grow in your career by giving you access to opportunities as they arise. It is one of the factors that can help one rise to the top echelons of any industry.