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Friday, January 28, 2005

Competition continues to die

If the merger between Proctor & Gamble and Gillette goes through, all of the above deodorant brands will be made by the same company. The top three are currently made by P&G; the bottom four by Gillette. That the main benefits of the move are to eliminate jobs and stifle competition aren't even concealed in the story:
The deal will mean about 6,000 job cuts, or about 4 percent of the combined work force of 140,000 employees. It said most of the cuts would come from eliminating management overlaps and consolidation of business support functions.
But beyond the job cuts, the deal would give the company even more demand over the shelf space at the nation's retailers and grocers, real estate that is at a premium.
Those increases in leverage and cost efficiency are expected to put pressure on smaller rivals to eye deals of their own.
I'm sure that the illusion of competition will be maintained, just as it is in the other aisles of the supermarket.