The recent announcement of MCI scouting for some serious partner for selling its Telecom business reiterates the fact of the big monsters in corporate America!The CEO of MCI, Capellas is known for his deals which he made earlier to make HP acquire his troubled Compaq.
The plans of SBC to acquire the AT &T is also a case in point.The Indian brigade is also following suit now with the Chennai based Aircel announcement of possible sale to Sistema as a second round of consolidation.Aircel acquistion is interesting in terms of the details of the deal like the swap of Indian sovereign debt from Russia to the telco.
Some queries peep in my mind about the above news..
Are we again entering into the big monsters game?
Is there no space for the small companies?
NO ... The size definitely offers its advantages of the scale of economies for the big monsters.However,it will be easier for a small company to be agile and flexible.The ability to respond to the changes in the business environment can be leveraged by a focused company catering to a niche market.Small niches and clusters can only be served by the companies and even if the monsters like to cater to the market they need to model in the lines of small profitable companies..
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