The business environment is traditional but densely consolidated industrial structure where large companies are favored.
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This environment has developed in large part because of the economies of scale created by the companies allowed monopolistic control of the regional communications systems.
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A bitter struggle for dominance exists between the world's three premier information provider/computer service companies and their consulting arms. Diller Enterprises, AT&T, and Motorola are the survivors of rapacious consolidation through the late Nineties and early in the new millennium.
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In the early 90's, mergers became attractive because companies in the telecommunications, information, entertainment, and computer services industries realized that their markets were converging and that the transition would require billions of dollars of infrastructure investment along with skills from the various industries. More than a dozen major U.S. and combined U.S.-foreign corporations pursued strategic alliances that led to the current landscape. Each company is roughly the same
size, and each has geographical areas of more or less similar market penetration. The combined value of these companies' markets last year (2002) was over a trillion dollars ($1012), up from $288 billion in 1992.
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