The dangers of adjacencies strategy are explored. While entering adjacencies seems logical for growth, it can distract companies from opportunities in their core business and dilute their capabilities. Many retailers, airlines, and other companies pursued adjacencies due to slowing core growth but had to return to their core, often in a weaker position. For big-box retailers expanding into small formats, it may undermine scale advantages and average down their distinctiveness. Not all adjacency moves fail, but companies should first ensure they aren't missing core opportunities before diluting their focus.