New Study Reveals Large Players Struggle Most
Contrary to popular belief, smaller companies are not being forced out of the market by their larger counterparts, says a new report released by Plimsoll Publishing Ltd.
“There is clear evidence of stagnation at the top of the market. 13 of these top 39 companies failed to increase sales above inflation compared to 20 last year. With many also experiencing rising costs, their future direction now looks uncertain,” said David Pattison, senior analyst at Plimsoll Publishing.
“The top end of the tyre manufacturers & distributors industry is heavily congested, with no room for any of the major companies to breathe. In other markets where this has been the case, supermarkets for example, there has been a series of major acquisitions to clear the air. Smaller companies are at little risk of takeover by any of the majors – they simply don’t offer any strategic opportunity. It’s a clash of the titans scenario – I predict we might see at least 2 of the UK’s top 39 tyre manufacturers & distributors companies having to merge or be taken over. In fact it’s so likely we have put 9 on the danger list.”