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The graph really should be U-shaped. There is a bit of manufacturing philosophy that I find relevant here. You can build an efficient factory that makes a lar
by bluetwo 9y ago
The graph really should be U-shaped.
There is a bit of manufacturing philosophy that I find relevant here.
You can build an efficient factory that makes a large number of identical widgets at a price competitors can't beat, or you can make a factory that makes small batches of custom order widgets at prices competitors can't beat.
However, when you try to build a factory that does both well, you'll end up with a price point that is no longer competitive.
In software, it is very similar. You can stick to a model, or you can spend your time customizing, but if you try to do both you'll end up with an unmanageable code base. This will eventually lead to rising costs and a lost competitive edge.
- keithnz 9y agoI think the graph is trying to describe an idea rather than be a reflection of reality, they do mention it will look different in specific cases. Though, I think as you point out, the graph could look drastically different for certain kinds of businesses.