The Round Table
Inside the “Round Table” of Corporate Giants: How Competitors Quietly Control Their Industries
Imagine CEOs of rival companies—supposedly locked in competition—meeting behind closed doors, aligning on prices, strategy, and market dominance. It sounds like a plot twist, but it’s closer to reality than most realize. In today’s corporate world, the competition is often an illusion—an elaborate dance orchestrated by a handful of power players, CEOs, and key investors who set the industry rules to ensure everyone profits.
The Secret World of Corporate Collaboration
Take the furniture industry, for example, where giants like Ikea, Ashley, and Wayfair appear to be fierce rivals. Behind the scenes, though, their CEOs are anything but enemies. Through private meetings and whispered conversations at trade shows and industry events, they share market intel, discuss pricing strategies, and outline moves to stabilize profits. One CEO might say, “We’re raising prices in Q2 due to ‘shipping costs’”—a cue for others to do the same, maintaining a delicate balance where no one brand disrupts the market.
Trade Secret: In the furniture world, executives talk about “turning inventory” and “product saturation.” It’s code for avoiding sudden influxes of new designs that would undercut each other’s collections. By staggering releases, they avoid oversupply and keep prices steady.
The Role of Key Investors: The Silent Power Brokers
Then there are the investors—firms like BlackRock or Vanguard—who hold stakes across the industry. They wield influence without a seat at the table, setting an expectation for “steady returns.” When they want stability, companies listen. CEOs aren’t just answering to their own goals but to investors with a financial grip on both competitors. Investors control the real chessboard: they can nudge companies to raise prices, cut labor costs, or refrain from major expansions.
Trade Secret: Investors often encourage companies to buy back shares or cut wages, ensuring higher dividends for themselves. It’s a subtle way to stabilize stock prices, keeping shareholders happy while quietly restricting spending on worker wages or product innovation.
The Myth of Real Competition
For consumers, this behind-the-scenes alignment keeps prices high and limits choices. The illusion of competition suggests choice, but that’s all it is—a suggestion. The truth? Many CEOs don’t see each other as competitors. They’re more like members of an exclusive club, working together to ensure that profits are predictable and the market stays “friendly.”
Even employee wages aren’t immune to the “round table” effect. When one company considers wage increases, it’s not uncommon for a phone call or text exchange with industry peers to follow. The message is clear: don’t shake the boat. Consistent wages mean no pressure to offer better pay, keeping the labor market in check, too.
The Future: Algorithms, Automation, and More Secrets
As automation and AI enter the game, these “round table” decisions will expand. Hiring algorithms, for example, could limit wages or screen out applicants based on subtle industry standards discussed privately. And with AI predicting market demand, they can control inventory even more precisely, limiting options while maintaining the illusion of choice.
The Bottom Line
For those who believe competition keeps companies honest, the reality is often the opposite. Power isn’t just about profit; it’s about control. And as long as this corporate “round table” remains unexposed, we’ll see the same cycle of manipulated markets, controlled wages, and strategically aligned prices. So, next time you see a price hike or wonder why choices are so limited, remember: what happens behind closed doors often decides what we see on the shelves.
