Ya, scale can be a powerful competitive advantage. "The social proof phenomenon which comes right out of psychology gives huge advantages to scale—for example,

Ya, scale can be a powerful competitive advantage. "The social proof phenomenon which comes right out of psychology gives huge advantages to scale—for example, with very wide distribution, which of course is hard to get. One advantage of Coca-Cola is that it's available almost everywhere in the world. Well, suppose you have a little soft drink. Exactly how do you make it available all over the Earth? The worldwide distribution setup—which is slowly won by a big enterprise—gets to be a huge advantage.... And if you think about it, once you get enough advantages of that type, it can become very hard for anybody to dislodge you." -Charlie Munger [1] [1] http://ycombinator.com/munger.html http://ycombinator.com/munger.html ----- On a somewhat related note, if there's anybody out there that wants to build a Groupon clone, or sell excess inventory of some product, or provide daily deals for anything, and you don't want to build the tech, check out http://cajoots.com http://cajoots.com (a project of mine).