In an increasingly globalized marketplace, companies are constantly facing new competitive threats to their businesses: ambitious rivals emerge to take away market share; nations change how they regulate industries; new markets may open, but firms find themselves unable to capitalize on them. Suddenly the old ways of doing business are no longer efficient or even effective. In today’s world, those pressures are only increasing. It’s a case of adapt to survive.
Instead of just letting their businesses fade away, forward-thinking firms recognize these threats and restructure themselves to strengthen their positions, also potentially benefitting investors. In the short-term, many companies that restructure are misunderstood, their retooling seen as a sign of weakness. But over the long term, the changes those companies make can create stronger businesses that may provide substantial rewards to their shareholders.
Indeed, restructuring can be a fertile source of growth, particularly within the complex structures of developed world economies, where efforts to specialize and increase efficiency may potentially lead to attractive investment opportunities.
Read about another Investing Megatrends shaping global investing: Mass Affluence and An Aging World
Mutual funds are subject to market risk and volatility. Shares may gain or lose value.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the open of business on December 30, 2013, and are subject to change based on subsequent developments.
Carefully consider fund investment objectives, risks, charges and expenses. Visit oppenheimerfunds.com, call your advisor or 1.800.225.5677 (CALL-OPP) for a prospectus with this and other fund information. Read it carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. OppenheimerFunds Distributor, Inc. is not affiliated with InvestingChannel.
© 2014 OppenheimerFunds Distributor, Inc. All rights reserved.