What would ensure a healthy competition?

Industry-wide Consolidation or Unified Platforms?

Consolidation

Among the popular indicators that the industry is close to its maturity stage. Which means that the market will move from a Perfect competition to Oligopolistic/Duopolistic market.


Until this point as consumers we enjoy the benefits of coupons/discounts/ freebies and what not. But as the consolidation begins, this will start reducing. Fewer players mean better control over price and margins.

Unified Platforms/ Super-Apps

Platforms which offer basket of services across various industries and categories. These apps are held by large conglomerates who have over the years invested in companies across industries.


Take Tata and Reliance for example, their portfolio of companies ranges from groceries delivery to digital retails stores.


As we all know TATA NEU will be the platform which will allow its users to access all products and services. I am pretty sure that Reliance will have one such app soon.


I believe the market needs a couple of more such Unified platforms to ensure that no industry enters a close to monopolistic market scenario.

This will result in a win-win scenario to both,

+ Providers – as they can achieve better economies with lower CAC, efficient supply chain management, etc. improving their margins.

+ Consumers – better customer experience and price points in a competitive landscape.

What do you think? Leave a Comment.


#customerexperience #superapps #cfo #leadership

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