Date Added: Jul 2009
At the beginning of the industrial revolution, market power resided with the manufacturers that had economies of scale and could control the supply chain. Typically, these manufacturers were vertically integrated, would produce to capacity, and would then push their products through the supply chain. Even today, many business models still reflect many aspects of the old "Push" model approach. In the late 1990s, with the advent of the Internet, shoppers gained new online capabilities and access to huge amounts of information. The new connected shopper is able to leverage this information and translate it into real shopping power that influences not only product design, but also the features, pricing, availability, and service levels that CPG companies must deliver in order to remain relevant in the marketplace.