Australian companies should better manage the expectations of shareholders who increasingly expect dividends and focus more on meeting the needs of global consumers, says UNSW Adjunct Professor Paul X. McCarthy.
That’s his advice for companies dealing with the disruption brought on by digital platforms. Aside from the price of iron ore affecting the big end of town in this year’s results, the major disrupter is the movement of advertising dollars to online global channels and marketplaces, such as multinationals like Uber, Google and Facebook.
He explains that sectors that were previously thought to be sheltered from the forces of digital disruption, such as legal services and real estate, are now facing the same challenges as other sectors.
Read more analysis on the bigger picture of what is happening in Australia’s business sectors, in our company results wrap series.