Flat footed
Global giants are being outmanoeuvred in the hunt for growth - OC&C's annual review of the Top 50 global FMCG companies (2015)
Thursday 13 August 2015Report
The sustained slowdown being experienced by the Global 50 FMCG giants is partly a reflection of cyclical exchange rate and commodity effects but also more concerning structural growth challenges as some of the old scale advantages erode and smaller nimbler competitors are better able to target specific consumer segments, aided by digital technologies.
This challenge poses a number of questions for the giants:
Where is scale really driving advantage in my business and how does this differ across geographies and categories?
- What is the right balance between simplifying through focus on the big brands versus tailoring propositions to best suit the needs of particular consumer segments?
- How do I best organise to enable key scale economies to be realised whilst freeing up the business to be nimbler at innovating and addressing local consumers?
As well as for the insurgents:
- Where are the best opportunities for more tailored propositions to successfully compete and gain share?
- What are the most effective means to harness agility and focus versus large scale competitors?
- How do I retain the distinctive qualities that have fuelled success as the business grows?