In today’s business world, the trend towards coverage and consolidation is becoming more prevalent. This phenomenon is observed even in the absence of widespread adoption of artificial intelligence. Large corporations are attempting to expand their reach by acquiring other companies rather than relying on organic growth. This is despite the fact that acquisition is not a business practice that they have excelled at in the past.
With the aid of public and other investor money, companies are acquiring other businesses in rapid succession. The result is that it becomes difficult to discern the core identity of the company and what it stands for. These companies attempt to leverage and expand their reach into as many areas as possible, much like an octopus. Some companies focus on developing and offering super apps.
Regardless of the marketing story they sell, whether as a vertical or category killer, the end goal is always the same: to be anything they can be in an attempt to please public investors. Since their core product cannot alone achieve the high revenue expectations from market investors, they attempt to acquire businesses to gain market share or access new territories they were not present in before.
Artificial intelligence has made significant strides in just under three months, providing automation and handling many tasks that were previously performed by large teams of people. As a result, many employees are at risk of being laid off unless they can provide value-added in some form.
We are witnessing a trend towards “me-too” products, where one company copies a feature from another rather than developing a complete innovative solution that may disrupt the existing market. This is because it is deemed too risky to take such a step. As such, the story often goes that a new rising star offers a completely innovative and disruptive solution that the market accepts, and those who do not react fast enough go extinct.
Even if a business has a core competency, which its entire business model is built upon, it is seldom changed. This core competency is what can make or break a company. Companies that are good at one particular expertise and develop their business around it are more likely to be successful. However, they still need to adapt to changes in the market and be willing to take risks to stay ahead of the curve.
In conclusion, while the trend towards coverage and consolidation is becoming more prevalent, companies must be willing to adapt to changing market conditions and be willing to take risks to remain competitive. Artificial intelligence is changing the way we work and perform tasks, and companies must be prepared to adapt to these changes. By focusing on their core competencies and being willing to take calculated risks, companies can ensure their long-term success.
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