Economies of Scale
Unit costs falling as volume rises, through fixed-cost absorption, purchasing power, density or learning. Scale is a real advantage only where the cost curve keeps falling and where a rival cannot buy the same volume; otherwise it becomes bureaucracy with a bigger payroll. Chandler's history is the record of which industries this actually worked in.
5 books · 4 people behind it · 4 resources
Start here
- ScaleGeoffrey West, 2017
- 7 Powers: The Foundations of Business StrategyHamilton Helmer, 2016
- The Visible HandAlfred D. Chandler, 1977
The people behind it 4
Each person holds a book in this entry or names it in their own tags.
Investors 1
Academics 1
Strategists 2
Resources 4
- Identifying Forms of Increasing ReturnsMichael J. Mauboussin · paper · Network effects and other sources of increasing returns.
- Market ShareMichael J. Mauboussin · paper · Scale, share and the economics that follow from them.
- Do Things That Don't ScalePaul Graham · essay · Why early growth comes from unscalable manual effort.
- Why Competitive Advantages DieMorgan Housel · essay · How success itself erodes the edge that produced it.
