One comment to “Bungie leaving Microsoft”

1. 

   #1

   David wrote:
   8. October 2007 at 10:01 am

   Mark,

   I think that you are right about companies where creativity is important. But for some companies, being huge can be a significant advantage. Companies that require complex distribution systems or that can spread IT or advertising costs over a much larger base can often benefit from scale. Size can also be important for companies whose customers want them to provide a total solution. For example:

   Spread IT costs: Banking. This is one reason why banks like Bank of America and Citi-group keep expanding.

   Spread Product Development and Marketing costs: Proctor and Gamble

   Ability to Provide all the service customers want: UPS and FedEx

   Supply Chain Advantages: Coke, Pepsi, Anheuser-Busch

   There is also the sad reality that compliance with government regulations are a significant problem for small businesses. It is often much cheaper, as a percentage of sales, for large businesses to comply with the burdens of government. This is one reason why small business owners tend to lean toward more libertarian approaches to government.

   David

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