Conglomerate Boom

Bigger is better. That’s the reason so many little blue pills sell each year.

Well, CEOs really like it when they’ve have a big, fat, uh…market share. In the late 1960s, as companies fought to survive, they found that combining forces to build and dominate markets would be a good strategy. The conglomerate boom was a boon, particularly in the technology and defense industries. What companies remained captured a big, meaty share of the market. That period was marked by low interest rates, inflated stock prices, and market volatility that created some opportunities for mergers and acquisitions. Of course, the companies got so big that the new companies saw diminishing returns.

In recent years, talk of Conglomerate Boom 2.0 has expanded with the rise of e-commerce and vertical acquisitions. In a short period of time, JP Morgan Chase has purchased 36 other financial institutions, Facebook purchased 77 internet firms, and Amazon has gobbled up 79 other companies.

Sorry, Mom and Pop. Your market share potential is shrinking, and no pill exists to bring it back.