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> with competitors that were more focused and agile and had lower cost structures so do economies of scale apply as a principle, or not?
by zasdffaa 4y ago
> with competitors that were more focused and agile and had lower cost structures
so do economies of scale apply as a principle, or not?
- AdrianB1 4y agoThey do, it is the only reason very large companies survive: they live on economy of scale and die of corporate ice age (get large, bureaucratic, slow until freezing). Scale and inertia.
- guhidalg 4y agoFor manufacturing, yes. For corporate governance, nah.
- coredog64 4y agoThere’s also such a thing as diseconomies of scale. My inexpert opinion is that you have to work at enabling economies of scale and that it’s very easy to fall into patterns that turn into diseconomies.