What aspects of the business are focused on in Horizon 2 of the Three Horizons Model?

The Three Horizons Model and other business growth models like the Ansoff Matrix, BCG Matrix, and McKinsey 7S Model all aim to guide businesses in their growth strategies. However, they differ in their approaches. The Three Horizons Model focuses on balancing short-term and long-term goals, with Horizon 1 emphasizing current core business, Horizon 2 focusing on emerging opportunities, and Horizon 3 exploring completely new ideas. On the other hand, the Ansoff Matrix focuses on market and product diversification, the BCG Matrix on market share and market growth, and the McKinsey 7S Model on seven internal aspects of an organization. Each model has its own strengths and is used based on the specific needs and context of the business.

The Three Horizons Model, while effective, can present several challenges. Firstly, it requires a clear understanding of the current business and its potential growth areas, which may not always be evident. Secondly, it demands a balance between focusing on immediate business expansion and long-term growth, which can be difficult to maintain. Lastly, it necessitates the exploration of new ideas, which can be risky and uncertain. Overcoming these challenges involves thorough market research, strategic planning, risk management, and fostering a culture of innovation.