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Posted April 12, 2023

By Dr. Auliana Poon

2 Minutes Read


Diagonal Integration: The Key to Business Success in a Tech-Driven World

Diagonal Integration: The New Strategy Traditional Businesses are Embracing

Have you heard of diagonal integration? In today’s tech-driven world, traditional businesses are embracing a new strategy called diagonal integration to better serve their customers. Dr. Auliana Poon first coined this term more than 30 years ago, and now companies like Amazon are leading the way.

So, what exactly is diagonal integration? Well, let’s start by looking at how companies used to operate. Back in the day, they would integrate vertically and horizontally to control everything from raw materials to the final product. This helped them gain monopoly power, but it didn’t necessarily benefit customers.

Enter diagonal integration. This approach focuses on building a strong technology platform that allows businesses to connect with customers and offer them personalized solutions. Think of it like a diagonal line connecting the customer to the business, rather than the traditional vertical or horizontal approach.

Amazon’s Success with Diagonal Integration

And who’s the master of diagonal integration? You guessed it, Amazon. They started out selling books online, but they’ve since expanded to offer everything from groceries to streaming video. All of it is available through a user-friendly platform that keeps customers coming back for more.

Leveraging Technology for Personalized Solutions with Diagonal Integration

So why should you care about diagonal integration? Well, if you’re a business owner, it could be the key to standing out in a crowded market. By leveraging technology to offer personalized solutions, you can win the loyalty of your customers and build a thriving business.

Let’s say you run a clothing store. Instead of just offering a generic selection of clothes, you could use data and technology to recommend outfits that fit each customer’s unique style and preferences. Or maybe you run a restaurant. By leveraging technology, you could offer a personalized menu that caters to each customer’s dietary restrictions and taste preferences.

The possibilities are endless, and the benefits are clear. By embracing diagonal integration, you can create a customer-centric business that stands out in today’s market. So why not give it a try and see how it can help you win big?

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About the Author:

Dr. Auliana Poon
Managing Director/Chief Strategist
Leve Global

auliana poon

Dr. Auliana Poon heads Leve-Global.  She is a courageous and passionate businesswoman. A trained Economist, Dr. Poon is a management consultant and strategist with a focus on sustainable and responsible tourism, climate adaptation, and regenerative economic development. Dr. Poon led teams that developed innovative economic solutions for over 50 countries around the world including Australia, Barbados, the Bahamas, Iceland, Indonesia, Jamaica, Mauritius, Mozambique, Singapore, Seychelles, South Africa, Swaziland, Switzerland and Zambia.

An experienced researcher and analyst with fiercely independent thought, Dr Poon believes that developing countries cannot continue to compete with natural attributes – Sun, Sand, Sea, Oil and Natural Gas alone.  For success and sustainability, a more people-centred, culture-oriented, innovation-based, sustainability-directed, technology-focused and talent-driven approach is needed. 

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