Inevitable changes in some Industries.

VOL. 0070 – FLORIDA, SATURDAY, JANUARY 10, 2026

Juan F. Arjona Harry

President & CEO Strategee   

Globalization, technology, internet and extreme competitiveness have led to changes on some industries.

These industries are changing slowly due to changes in some of the following conditions:

1. Reduction or enlargement in the MES –Minimum Efficiency Scale-. Technology is the primarily responsible for this first aspect.

2. Technological advance creating an entrance barrier.

3. Technological advance that somewhere in the value chain, operations are fractionated by specialization.

4. Forward Integration in part or parts of the value chain, precisely to capture greater value. This scenario usually puts the corporation to work in different market structures.

5. Forward Integration to guarantee the purchase of integrated clients.

6. Forward Integration because the purchase or use of the product or service is complementary to other industries.

7. Backward Integration to control costs.

8. Forward Integration to ensure that the final use or destination of the product or service meets the quality standards.

9. Total or Partial Integration.

10. Advance knowledge generation and technology in design, production or service.

11. Legislative changes.

12. Generational changes or trends in anthropological or sociological character that can change the purchase values ​​of the category, dramatically affecting the profile of the sector and its future evolution.

These causes changes in emerging industries or categories allowing great opportunities for some companies to generate adverse competitive environment. The changing period for industries shifted from 35 years to 8 years.

The following industries may present changes in the next five years:

1. Retail: the retail business will start to experience changes due to the impact of technology and the increased perception of time.

2. Airlines: due to increased competition provided by the low cost airlines.

3. Hospitality: given high growth rates and the need for lower cost, the fragmentation will lead this industry.

4. Technology: this sector is expected to further consolidation, given two conditions, the short obsolescence lifecycle and the need for continuous innovation.

5. Construction: the higher cost of land will bring an increased focus on the sector for the construction companies, but further fragmentation in the activities in which this chain is composed will arise great opportunities.

6. Ground Vehicles: this sector will generate a greater contraction of bidders, since it is on the verge of great energy transformation in the next 10 years. Many companies will be unable to participate in the market created by the new electric technology.

7. Luxury goods: the entire population of the planet calls for luxury goods and more exclusive brands.

8. Human Medicines: consolidation in this sector will be marked by access to fragments of the Human Genome.

9. The production of commercial aircrafts: via higher environmental regulations, this sector shall use new materials with high performance tested and proven in use.

10. Education: this industry will be fragmented by the increasing penetration of technology and the possibilities of flexibility offered in the new educational models. Investment in this sector may be in educational platforms and learning methodologies that ensure best results.

In these changes there are always winners and losers and some other opportunist that take advantage of changes to disrupt with profitable ideas.