Business Networks Ranges Into Trillions of Dollars
How big are the business networks we are discussing?
One estimate puts the combined worth of these supply networks into trillions of dollars as you seen in above picture.
Each industry has a highly unique and valuable supply network that its participants have created in response to the circumstances, regulations, customer needs, and economic situation in the industry.
Either by trial and error or by intelligent design somewhere along the way, each of these networks has evolved over the past several decades to reach into its current state as a result of all the changes in economics, technology, regulatory requirements and customer tastes. Sometimes a new player, such as Red Bull, enters the industry and causes a major disruption to the established supply relationships and networks. In most cases, the established supply relationships and networks in every industry will go through a gradual evolution as the environment evolves. Most CEOs are now familiar with the power of supply networks transformation. Currently in many industries these supply networks are rapidly undergoing massive transformations as CEOs adjust their business strategies to global realities.
We will cover Business networks and supply networks in great detail in Sections II and III. For this reason, we will devote the rest of this chapter to looking at some other types of networks familiar to you.