The report also quantifies how the digital cannibalization of traditional media has polarized the industry.
In the report, Oliver Wyman identifies six opportunities for action, applicable across all regions and industries, to help CMT companies reinvigorate value growth:
- Invent new end-user value propositions and consider focused vertical integration
- Master the art of pricing
- Embrace new partnerships – with friends and foes,
- Endorse new economic models,
- Explore more radical and innovative paths to reinvent and streamline operating models
Migrating Value
Overall, value is migrating to global players, mainly in hardware and software firms in North America and China. Valuation in North America, which holds nearly half of all CMT value, was up last year essentially concentrated in the Hardware Equipment and Semiconductors and Software and services subsectors (See Exhibit 1.2).
Outside North America, the Communications sector is the main concentrator of value – with the exception of Japan, South Korea and India. Europe is down, and Japan is in free fall (the earthquake/tsunami catastrophes exacerbated existing market issues).