CONSOLIDATION
The word “CONSOLIDATION” is mentioned on page 136 of the book ‘Fast Food Nation’ by Eric Shlosser. It reads “On top of all that the growth of the fast food chain has encourage “CONSOLIDATION” in the meat packing Industry”.
In other words, the fast food chain encouraged the meatpackers to come together so that the prices of the meat would be determined by the newly formed group in order to have a decent profit.This is to counterattack any of the meat-packers who were supposed to be rivals. Instead, they aligned themselves against the ranchers in order to force price reduction.
The collaboration of the meat packers provide them with leverage, of which they could almost dictate the prices of the meat. The ranchers would be left with no choice but to accept the new prices. Failure to do so will cause the ranchers to loose on the price of the meat.
A significant observation about the consolidation is that, the meat packers strengthened their bargaining power, and hence were able to make lots of profit at the expense of the ranchers.
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