Successful Acquisitions

Major Players

Another factor you are likely to consider is the number and strength of major players. Is this a market dominated by one or two 800-pound gorillas, or is it reasonably divided among a number of leading contenders? The field always narrows at the top, but the question of how narrow gives an important indication of the competitive environment. For example, the aerospace industry is heavily consolidated at the top, while leadership of the more niche avionics market remains comparatively diverse, and such diversity can indicate greater scope for growth. People easily get the idea that a big market means big opportunities. But if that market is dominated by only a handful of players, it is difficult to create a strongly competitive presence ...