As I have considered my 2019 trending predictions, many of my readers might not think they are a big deal. In fact, since they do not specifically talk about new trends in technology, some might even blow them off. What I have tried to provide is a 10,000-foot level hoping each of you can see there is a bigger picture than what one might first have realized. In this blog, I will drill further into these areas to give a different perspective.
All of my 2019 Predictions Came True.
Again, since the beginning of time, there have been many of these things happening, so why talk about them? Because they are happening at a much faster rate than in the past. Part of my 2020 predictions circle back to my 2019 predictions that will continue to grow and cause more growth for some companies and reduction(s) for others.
Sure, we have seen many companies buying another company or merging with another company to create a much larger company. This has worked well the last 10 or so years, but now this approach is being closely scrutinized by entities desiring equality with competition.
Please know that I believe this should be the case to protect you and I, the consumer.
However, what companies have the money to grow and help things change at a faster pace in the areas of health, new technology, or how we live our daily lives? We all know the answer is, who has the money and the business culture to make this happen. Of course, it is the very ones that we want to restrict from merging or buying another company out. This basically places us or those trying to protect us in a difficult spot.
My 2020 prediction is that we will see more of these large companies buy up to 49% of another company to get around being considered too big. We do know that if a company owns a sizable stake in another company, they do not want their investment to go south so the buyer will still accomplish their end game. These companies are no different than other companies in that the end result is to own a majority of that particular share of the market to make any competitor(s) a non-factor.
Companies will Continue to Fail for Many Reasons.
- If companies are not watching out, are not changing, are not adapting, they will be one of the companies that will fail e.g. Macy’s is closing more stores in 2020. Not sure if they will really make it. Forever 21 just recently sold for 81M to new buyers. Both of these companies were once top retailers, but now each is trying to hold on hoping for some kind of lifeline. Things can change so fast unless someone is watching for trends AND then once they see the trend(s) are willing to do something about it.
- As I talk to people, employees, and work with companies, I am hearing that employees are afraid they will lose their jobs, their incomes, rather than inform their company of
- Why profits are down
- Being tinkerers. There are good things tinkerers can bring but they normally also bring indecision, contradiction, instability and do not follow through*
- No accountability
- No processes
- Fewer understanding the game of business
- Lack of appropriate training
- Who really isn’t doing their job
- Fellow employees do not want to look like the bad guy, the person that could be considered the tattler
- Fellow employees cover for those people which in turn increases frustration and causes more inefficiencies
- Management turns a blind eye to these people because they do not want to deal with feeling bad when letting someone go or because they have not followed protocol to be able to let them go for a reason
- Why profits are down
- One big area of failure is caused by our ego’s. This is from the top down. “C” level, managers, and supervisors do not want or take others input thus staying on the same path or on their path to get them what they desire out of the situation; e.g. prestige, money, friends, slower pace of life, less conflict with others, etc. (“People have an opinion in their heads that might be wrong, but they can’t get away from their egos to consider otherwise. To consider would be to live with some uncertainty.”- Ray Dalio)
- Companies’ whose finances are in bad shape will be affected by things like the Coronavirus or not ensuring safety of a product you are manufacturing so that people do not die have ramifications up and down the ecosystem. The question we should ask ourselves is, “What domino will affect other dominos and how many dominos will actually get affected?”
Apple will Continue to Grow. Yeah, Yeah, Yeah!
I believe this is important because it should make us ask ourselves and our employee’s, “What is Apple or even Amazon, Facebook, Google, and Microsoft willing to do that other companies, our companies are not?” All of these companies are growing at a phenomenal rate. The question is, “What are they doing differently?” One is that they are not waiting long to get into the game. A good example of this is IBM recently announced they will get into the Cloud business. Sure, they will make some money off this venture but to me it sounds like, if everyone else is in it, we better get into it as well. Someone for sure was not watching the trends here or management didn’t listen to those that recommended getting into this area early on. My gut tells me that originally IBM’s ego’s said this is not a sound business direction, instead of watching the trends…Making decisions on trends is more important than of years past. In the end, the stockholder has been the one to have lost.
Hype! Hype! Hype! / False Advertising
Yes, we have had hype and false advertising for years, but it is growing, and no one cares to or can’t do anything about it. In turn, it sure makes it hard to make good decisions when you can’t find out what is real and what is not until you purchase something. The hype right now surrounds 5G technology, and after talking with some consumers, I learned that Verizon is not allowing people to use their own BYOD (Bring Your Own Device) unless it is a 4G LTE or 5G phone in some areas of the country. I wish I could increase revenue by forcing consumers to use only two choices. I find it interesting that many parts of the country do not have 4G LTE or 5G. If any of my readers are watching all the articles being written, 5G is moving much slower than expected. So what happens when this person travels to those parts of the country where there is not 4G LTE or 5G? They will experience bad service, no service, frustration, *@#?&…….What can be done about this? Nothing unless you have lots of money or you can find others with the same issue and find a good attorney. Carriers know this…..Good luck with that one.
Please know I use Verizon and am happy with my service traveling nationwide or even internationally. My point is that many consumers will be frustrated and not get what they had been promised, while paying more than they thought they would pay for their purchase.
New 2020 Trends
- Companies will try and stay under the radar of regulators in the US and World-Wide by buying into other companies instead of buying them outright.
- We will see more complaints, which many will be justified, coming from the Justice Department or European Antitrust Commission about the practices of large companies. More fines will be given out but will not change the fact that these large companies desire to be the largest companies in the world and will take creative paths to get there. I am not saying this is good or bad since we will see both in the short run.
- Efficiency and profitability will continue to slide even though company’s revenues will be increasing. Those companies that have the money will find ways around people to increase their efficiencies and profitability through automation that excludes people more and more. Sadly, people can make a huge impact on a company’s efficiency, but everyone has to be on board for accomplishing the end company goal.
- We never know when we will be blindsided, even if we are looking for Trends. Who would’ve ever thought that our nation, or our world would be so negatively affected by something like a virus to the point of impacting business the way it is? It just goes to show us that those companies better managed will survive and I believe will thrive when it is all said and done. I do hope your company is one of those better managed!
- Dagger Guild sees the trends and understands what is needed within companies to increase revenue, improve profits and assist in helping a company become a game changer, even in light of COVID-19.
SOURCE: *From the book “Just Do Something” by Kevin DeYoung
ARTICLES For Reference:
- Amazon challenges India antitrust probe in court: filing https://reut.rs/2UFyuf2
- Google, Apple Among Tech Firms Facing Probe of Small Deals
U.S. technology giants face a new wave of scrutiny from antitrust officials, as the Federal Trade Commission demands information about their acquisitions of startups that may have eliminated emerging competitors https://www.bloomberg.com/news/articles/2020-02-11/google-among-tech-giants-facing-new-antitrust-scrutiny-on-deals
- Justice Department Ramps Up Google Probe, With Focus on Ad Tools https://www.wsj.com/articles/justice-department-ramps-up-google-probe-with-heavy-focus-on-ad-tools-11580904003
- EU Deepens Antitrust Inquiry Into Facebook’s Data Practices https://www.wsj.com/articles/eu-deepens-antitrust-inquiry-into-facebooks-data-practices-11580994001
My name is Larry Treas and I am CEO and Head of New Thinking at Dagger. I have 35 years of witnessing the madness that blows through companies around the world, and it’s a foul breeze. I created the Dagger Guild to forge peer discussions, mentoring sessions, and specific information pipeline deliverables to address, solve and alleviate the standard issue nothingness you go through daily. Dagger has no allegiance, no affiliation, and no ties to carriers, vendors, advertisers or telecom marketers of any kind. As a result, our advice is both untethered and unbiased.
You can see from my CV/resume my track record and years of experience. The Dagger Guild is my dream built upon the belief that together, we will create the next generation of heroes.