Stick to the Core--or Go for More?

In this article Thomas J. Waite evaluates the story of Advaak and analyses the thought of expanding from its core competence.  One of two business partners at the head of Advaak give advice to a client about going into the energy drink business when they have a core competence of advertising.  After one partner gave advice to the client he got enthusiastic and pitches the idea of expansion.  After presenting the story Thomas goes on to evaluate the situation further and determines if Advaark were to venture from its core competence it would be a bad idea.  The author continues to explain what a company should consider before expanding from its core competence.