STRATEGIC FOCUS

Abstract

The food industry is seeing enormous changes. The consolidations that have been noticeable in automobiles, electronics, oil, steel, and heavy machinery are now in full bloom in food. Companies are being formed in the $6 to $20 billion annual sales range with worldwide connections. Companies seeing that radical diversification brought reduced earnings and higher risk from unfamiliar businesses have cut away the nonfits and doubled back on food (a business with which they are familiar), taking positions through acquisitions or market entry in all the major growing segments. Eventually, we would expect to see the industry dominated by multinational organizations operating in an oligopolistic situation.

Citation

Gordon McGovern, R. (1985), "STRATEGIC FOCUS", Journal of Consumer Marketing, Vol. 2 No. 2, pp. 63-66. https://doi.org/10.1108/eb008124