Diversity organisations are characterized by their creation of customer specific offerings at the point of contact with the customer, or very close to it. Their position in the marketplace is based on the relationship they have with their customers, and the ability of the organisation to adapt its operations to meet the specific needs of each one.

Each customer interaction potentially creates a separate transaction structure unique to that particular customer, and in the course of a long term relationship with the customer the organisation will adapt and change its operation on the basis of information it learns from working with its customer.

The organisations profitability is based on its ability to obtain a premium price for services from the customer on the basis of their existing relationship, and the high search, negotiation and switching costs that would be incurred by the customer to find an alternative supplier and integrate them into its business.

Prototype engineering, customised legal and accounting services, private banking services and out-sourced support services typify these organizations