- New conglomerates use the enhanced computing power of the internet and advanced technologies like artificial intelligence to coordinate diverse activities within their organization.
- Unlike traditional conglomerates that focused on supply-side strategies, these new conglomerates harness customer data, and demand-side principles to build and scale differentiated business units that meet the needs and wants of their core customers.
- A tight-knit ecosystem of partners and vertically related relationships allow internet-enabled conglomerates to capitalize on synergies and enhance their customer-centric approach to products and services.
- These conglomerates may not prioritize immediate profitability and instead focus on gaining a strong position in new markets. Adaptability in organizational structures allows for quick pivots away from low-performing activities.
Adapted from “Rise of the New Conglomerates” by Kathryn Harrigan of Columbia Business School.