What Roll Ups Give Us
Bill Floyd
Is less more, or is more less?
Unless you've been distracted these past several years you couldn't help noticing all the roll ups that have taken place. Smaller, often family-owned, distributors are now smaller parts of of larger entities. Likewise, for formerly independent manufacturers. There are obvious advantages and disadvantages to this evolution that are worth examining.
Bigger is better?
Bigger permits economies of scale. Where there was duplication, it can now be eliminated. Talent can often be utilized in a wider fashion and often spread within multiple divisions. Larger corporations can also step up with cash that small companies can only dream about. This applies to R&D, IT, Marketing, Advertising, inventory and more. Also, bigger usually covers more geography and therefore can have better known brand-spread. They too, most often employ legal and other specialists that understand off-shore and other complicated but profitable markets.
Smaller is better?
The small guy focuses and lives and dies within the one small chunk of geographic territory in which he operates. He is a member of the community and often a board member of local civic organizations. Unlike many of his larger competitors, he does not answer to Wall Street, nor is he bound by overly protective legal staffs, bureaucratic entanglements or ORG charts. His laser focus and flexibility to understand and help customers in anyway necessary is unquestionably his strength.
Both have +'s and -'s?
Ultimately the customer will decide what's right for him. If only size mattered, the giants like Walmart would own the world. But there is a place for the little guy too. While not impossible, it's extremely hard to be a big organization and be known for great personal service. In this case size is rarely a positive. It takes great and committed management for the big guy to pull this off. That quick reactive experience is most often found with smaller companies. The bigness or smallness of large and modest sized corporations can be both a blessing and a curse.
So, whether your company is large or small the key to success it to exploit your strengths while bettering or masking your deficiencies. You customers will be the score keepers. They will let you know how well you're doing.
Contact Us: bfloyd@electricsmarts.com
Unless you've been distracted these past several years you couldn't help noticing all the roll ups that have taken place. Smaller, often family-owned, distributors are now smaller parts of of larger entities. Likewise, for formerly independent manufacturers. There are obvious advantages and disadvantages to this evolution that are worth examining.
Bigger is better?
Bigger permits economies of scale. Where there was duplication, it can now be eliminated. Talent can often be utilized in a wider fashion and often spread within multiple divisions. Larger corporations can also step up with cash that small companies can only dream about. This applies to R&D, IT, Marketing, Advertising, inventory and more. Also, bigger usually covers more geography and therefore can have better known brand-spread. They too, most often employ legal and other specialists that understand off-shore and other complicated but profitable markets.
Smaller is better?
The small guy focuses and lives and dies within the one small chunk of geographic territory in which he operates. He is a member of the community and often a board member of local civic organizations. Unlike many of his larger competitors, he does not answer to Wall Street, nor is he bound by overly protective legal staffs, bureaucratic entanglements or ORG charts. His laser focus and flexibility to understand and help customers in anyway necessary is unquestionably his strength.
Both have +'s and -'s?
Ultimately the customer will decide what's right for him. If only size mattered, the giants like Walmart would own the world. But there is a place for the little guy too. While not impossible, it's extremely hard to be a big organization and be known for great personal service. In this case size is rarely a positive. It takes great and committed management for the big guy to pull this off. That quick reactive experience is most often found with smaller companies. The bigness or smallness of large and modest sized corporations can be both a blessing and a curse.
So, whether your company is large or small the key to success it to exploit your strengths while bettering or masking your deficiencies. You customers will be the score keepers. They will let you know how well you're doing.
Contact Us: bfloyd@electricsmarts.com
