Specialization vs. Consolidation

Invasion of the bottle snatchers

It seems as though we wake up to news of mergers and ever-growing corporations nearly every day, but today’s changing market strategies and consumer demands can also make the little guys big competitors. Local companies are frequently more attuned to consumers’ needs than global corporations, and buyers also tend to trust smaller companies more. This new relationship has led to huge growth in specialized companies, and craft breweries are a great example (today there are 4,000+ in the U.S.). Big companies are competing by selling off or consolidating separate brands, investing in research to better understand their customers, and even buying up more companies and rivals to cut costs. While some CPG (consumer packaged goods) executives are confident in their strategies, others are beginning to wonder if the billion-dollar brand is still an effective model. (The Economist, 07.09.2016)