Consolidating industry need that
Consolidating industry need that - dating pk
This process may take less than decade or it may take several decades, but it almost always happens in a predictable pattern.The winners in the first phase of building any industry are usually experts that developed broad knowledge about the industry and customer requirements and as pioneers build the industry from the ground up.
It seems out of place, then, that new research from A. Kearney predicts that we are on the verge of unprecedented merger and consolidation activity in some of the biggest industries in the world.As always, there will be few winners and many losers, which is why CEOs must know exactly where there industry sits on the M&A curve and plan their strategy accordingly.CEOs have plenty to worry about these days: a slowing economy, turbulent equity markets, corruption and scandal throughout the business community, and the dual threats of war and terrorism.This article describes our research and suggests strategies for success in this new wave of merger activity.Imagine a merger that forms a bank with more than a trillion dollars of assets.Because the merged entities can merge existing operating structures and reduce any overlap, there is usually an opportunity to realize significant cost synergies.
There are numerous other reasons which might cause a company to acquire a rival, like gaining an expanded geographic reach, a larger customer base, a broader product line, etc.Like oligopolies, duopolies, cartels, and other environments in which a few companies control all or a significant portion of an industry, consolidations alter the balance of power in an industry.A stage in the life of a company or an industry in which components in the company or industry start to merge to form fewer components.But, our research suggests, every company in every industry will go through these four stages—or disappear.Thus, an understanding of where in the cycle an industry is should be the cornerstone of a company’s long-term strategic plan. Selector .selector_input_interaction .selector_input. Selector .selector_input_interaction .selector_spinner. Selector .selector_results_container.hover_menu.hover_menu:before,.hover_menu:after.hover_menu.show_nub:before.hover_menu.show_nub:after.hover_menu.show_nub.white_bg:after.hover_menu .hover_menu_contents.hover_menu.white_bg .hover_menu_contents.