Canadian companies BlackBerry Ltd. and Bombardier Inc. currently face the dilemma of either exiting their industry or shrinking to become a niche player. Both have taken different routes says Professor George Athanassakos.
In his op-ed for the Globe and Mail, Athanassakos analyzed the current competitive disadvantages that BlackBerry and Bombardier have found themselves in and how they have coped thus far.
“Value investors do not like to invest in companies that operate in an industry in which they are in a competitive disadvantage,” said Athanassakos. “They will destroy value rather than create value for the shareholders. The rational thing for such companies to do is to either exit the industry or shrink and become a niche player.”
