Archive for September 30th, 2004
Impending High-tech mergers
The high-technology sector displays all the characteristics of a mature industry overdue for restructuring: slowing growth, slim profit margins, fragmentation. Soon, price pressures and the changing behavior of customers will probably get consolidation going. Smaller companies will have to choose between being acquired or working within the sphere of larger vendors.
High-tech companies should anticipate the sector’s imminent restructuring by preparing for more deals—some hostile—and perhaps by repositioning themselves, through changing scale and scope, within an evolving industry structure.
