This PPT slide, part of the 29-slide Consolidation-Endgame Curve Framework PowerPoint presentation, outlines the 4 distinct stages of the Consolidation Curve: Opening, Scale, Focus, and Balance & Alliance. Each stage represents a phase in the lifecycle of industries as they undergo consolidation.
In the Opening stage, industries are characterized by low market concentration. This phase typically involves newly deregulated sectors, startups, and spin-offs. The driving forces for change include new technologies, regulations, and evolving consumer demands. The combined share of the top 3 players in this stage is 41%, indicating a fragmented market.
As industries transition to the Scale stage, major players start to emerge. Here, size becomes crucial, and these larger entities begin to dominate the consolidation process. Niche players face increasing pressure, and concentration rates can rise to 45% in certain sectors. The share of top players increases to 42%, reflecting this shift.
The Focus stage sees successful companies aggressively outgrowing their competition. These firms concentrate on their core business, often eliminating secondary units, which streamlines supply and value chains. The concentration of top players rises further to 50%, showcasing a more consolidated market.
Finally, in the Balance & Alliance stage, consolidation rates soar to 90%. A limited number of players dominate each industry, leading to strategic alliances among large companies. This stage presents challenges for growth, prompting firms to seek new industries in the Opening stage. The slide emphasizes that industry titans control 70% of the market at this point, underscoring the significant shifts that occur throughout the consolidation process.
This slide is part of the Consolidation-Endgame Curve Framework PowerPoint presentation.
This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. Consolidation-Endgame Curve is an AT Kearney Growth Strategy framework commonly used by strategy consultants.
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