The dilemma of being too small

There are always situations in which you have to make a decision.

One is when you realize that your company is too small in a market. Markets shift, through technology, regulations, preferences, acquisitions. Even if the organization is actually large, it may be facing a decision. The consequence is that the organization will not have the same economies of scale and scope.

Two examples.

Chemical giant Bayer had such a problem in 2016. In the area of weed killers, a wave of consolidations threatened the market. The decision was to buy up itself: Monsanto.

Heating manufacturer Viessmann faced a wave of decarbonization in Europe. Even though the heat pump division held a top position among European suppliers, the pressure from larger suppliers in Asia is very strong. Viessmann sold the business segment and with it the core of the company.

How would you have decided? What questions would you have asked yourself?