Reddal Talks: Breaking out of a gridlocked industry

Financial performanceStrategySales growth

6 November 2017 — Companies in traditional industries often face a gridlock with low growth and a saturated market. Unless decisive moves are taken by the management, breaking out of this cycle is challenging.

In a so-called traditional industry, companies often find themselves stuck in a gridlock with low growth and a saturated market. Competition is fierce, resulting in a bloody battle to gain marginal market share. This leads to continued low profitability, spiraling the industry down in a vicious cycle. It is extremely challenging to break out of the trend, unless management takes a decisive move to change the rule of game. In this video, Per Stenius and Hyojeong Lim, expanding on some of their recent work looking at gridlocked industries in Korea, share some of their findings about what is holding them back and how to break through this gridlock.

Read more about the topic in our Reddal Insights article - Creating value in gridlocked industries.

Tags
South-East Asia, Korea, Packaging, Corrugated packaging, Market consolidation, Regional expansion, Profitability, Reddal Seoul, Growth, Talk, Gridlocked industry, Industry dynamics, Private equity, Family owned businesses

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