3 ms·
As always, the devil is in the details. Larger companies can get better deals from their suppliers. It can be a nice alternative to bankruptcy for a company wh
by crote 3y ago
As always, the devil is in the details.
Larger companies can get better deals from their suppliers. It can be a nice alternative to bankruptcy for a company which is unprofitable on its own. It would allow for integrations which would be all but impossible with separate companies.
Of course in practice it rarely works out like that. Megacorps usually do acquisitions to get rid of competition or to obtain technology. The smaller company is almost always completely gutted within a few years, to the detriment of their original customer base.
- kelnos 3y agoThat's not how it has to be, though. If we were to legally allow smaller companies to collectively bargain with suppliers to drive prices down, maybe that could work. Or maybe not. But the point I'm making is that we don't have to solve the bad features of our economic system in ways that make things worse, just because that's how it's always been done.