PRODUCTS, BRANDS and MARKETS are no longer the same!
Added value from our traditional inputs have been reducing as global capabilities and competition now converts products into “commodities faster and faster”. Markets are now established by BIG BUSINESS but their commoditization erodes the Brand differentiation. We have been witnessing FIRST a constant reduction over decades in the “number of businesses that survive and succeed within every product segment”. Once again Linear logic had intervened and convinced most of us that “larger size is the only way to survive because “deep pockets are required to absorb the big losses” that are necessary and inevitable to acquire customers and markets! This logic keeps our small businesses.
So while we witness relentless “Mergers and Acquisitions” to gain control and get bigger, there are clear indicators within Balance sheets that “large companies who are dependant on the SAME products for years have falling margins and are vulnerable due to their inherent high costs. The longevity of new technologies are also falling and almost all technology has a “pre-ordained, faster obsolescence with a very uncertain lifespan”
New entrants are able to “constantly erode market share”. Market research reports indicate for almost all segments and also applicable to large business that the “main growth and added value will almost always come from those products and services that are introduced within the previous 2 years”.We know and observe that it is NOW the subjective inputs that are now creating the “differentiators that determine added value and success for products and services”.
What does this mean for OLD NAMES & BIG BUSINESS?? They have to renew their brand and image more frequently and perhaps at a higher cost than previously done.
This trend along with a future that indicates a continuing uncertainty must be seen as the END OF THE LINEAR GROWTH STRATEGIES that always seem to conclude that “BIGGER AND ADDITIONS IS THE ONLY WAY TO SURVIVE ”.
We believe that this Non Linear Era is a unique time FOR SMALL BUSINESS TO ENTER MARKETS, and compete with the “big boys”
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