I like this article. Where it goes slightly off track (IMO) is listing all the reasons/ways big companies have an advantage. They're all true, but some of them

I like this article. Where it goes slightly off track (IMO) is listing all the reasons/ways big companies have an advantage. They're all true, but some of them are basically the same as they've always been. The change/trend is the interesting part. The main point I took from this is: Network effects is the new economies of scale. Economies of scale is an almost fundamental law in microeconomics and the generally accepted reason for companies getting big. Bigger factories make stuff cheaper. It's a big deal if it is being surpassed by a law of network effects. Since technology (especially software) has low variable/marginal costs a naive guess would suggest that technology should strengthen, not weakon this rule. For network effects to match or overtake economies of scale as a driving factor is interesting. If you're looking for a positive side for startups, here's mine: Network effects are easier to build than economies of scale for a startup. Invention, creativity and fresh perspectives are sometimes enough to build networks.