Saturday, March 7, 2009

Diversification.

When IBM's primacy as the leading computer manufacturer went into doubt -- when other companies began making similar machines with similar specs at similar prices -- IBM did what smart companies do and started IBM Global Services, the business consulting arm of the company. Consulting allowed IBM to leverage its name as the leading technology innovator in the field and open new revenue streams.


Similarly, with a recession promising to cut into the profits of the Colorado Rapids, the club decided to begin offering ESL classes to Denver's sizable Spanish-speaking population. For $200, fans will get six sessions, class materials and tickets to Rapids matches. Rapids players and coaches will also be involved in teaching the course.


The program could provide a valuable public service, while offsetting losses from tickets and merchandise revenues during the recession. Plus, presumably the students will use these courses to find better employment -- if that's possible nowadays -- and the Rapids will have helped some new fans find more affluence. Bravo to the Colorado Rapids.

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