I\'m chatting with the proprietor of a small chain of coffee shops in Montana. S

Question

I'm chatting with the proprietor of a small chain of coffee shops in Montana. She tells me that Starbucks just can't make the variety of coffees that she can, particularly those that involve lighter roasted beans. Apparently the huge chain uses immense roasters (3,500 pounds at a time) that ore not well suited to lighter beans. The economics of scale generated in using these roasters make possible substantial profits, but they do not allow roasting small amounts that, she says, are essential for light roasting. I don't know the technology of coffee roasting; but if she is correct, perhaps Starbucks will wind up like the beer giants Miller and Anheuser Busch, having large shares of the popular market with substantial room left for local brands and micro-roasters. Con you think of other industries where there are a few huge firms and lots of little ones with specialized market niches? How are the reasons for their existence the some or different from those that characterize the coffee shop or beer markets?

Explanation / Answer

Yes, you can think og Industries where there are a few Huge firms and lots of little ones with specialised market. In India, there are only 4 Big Firms in Consultency and Analytics (also knows as Big 4's) i.e. Delloite, KPMG, PWC and EnY. They have an oligopoly in the market. They share around 99% of consulting and Auditing Share in India. But there are so many no. of small firms with specialised market niches. Small firms are providing unique and specialised accounting, consulting and Analytics services e.g. usually these small firms specializes in some key areas, like Marketing Analytics or CRM or TQM and so on. The reasons for their existance is simply their Customer value and the services they provide for far lesser than the Big Giants charge.

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