Paul Martin's Business Update - January 21st

Paul Martin's Business Update - January 21st

In a world where market consolidation – the big companies getting bigger – becomes more and more evident, there may also be growing opportunity for smaller, more nimble businesses.

That is the observation drawn by business professor Heinrich Grieve in the wake of the mess that left many Christmas presents undelivered last month. It seems that on-line consumers overwhelmed shippers who couldn’t keep up and parcels turned up late.

Grieve, who teaches at INSEAD, a global university with campuses on three continents, says this may create an opening new business alliances of smaller players in the transportation game who can respond more quickly as a network during peak periods. And he thinks on-line stores will learn to keep two distribution channels open: one with the traditional big guys like FedEx or UPS and another with the small players.

His point here is that even in a world of consolidation, there’s always room for little guys. AS the big get bigger they get more rigid in their operations, the very thing that makes it possible for more nimble or agile businesses to carve out their own niche.

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