They have usually grown to be large because they possess some kind of advantage, and the fact that they are large gives them economies
of scale advantages.
The other guys — the Samsungs, HTCs, Motorolas, RIMs — can't match Apple's hardware design, don't even try to match Apple in terms of original and differentiated software, and struggle to match Apple's prices because they don't have the economy of
scale advantages Apple does.
Charlie Munger makes two key points here: 1) some bargains are only visible if you understand qualitative factors and 2) there sometimes are catalysts that can boost the value of the stock even further based on factors
like scale advantages, favorable regulatory changes, improving secular phenomenon and better systems or business momentum.
Part of the reason behind this reversal, says Elon Musk, is that at first Tesla was worried that if they didn't protect their technology, big car manufacturers would copy it and then use their massive
scale advantage in manufacturing, sales, marketing, etc, to crush them.
Benefits of a small business Economies
of scale Advantages / dis advantages How is the size of the business measured?
The scale advantages are obvious, but the costs of executing another merger and the challenge of folding in yet another culture (and more debt) into this already unwieldy company seem daunting.
I mean, if you can have more scale, you get more attention from platform providers; you can afford to pay some of these commission free platforms to be on their platform, so there's definitely
some scale advantages there.
Tesla's
scale advantage should melt away fairly quickly.
This combination allows us to consolidate premier assets that seamlessly fold into our drilling program, enhance
our scale advantage and reinforce our leadership position in the Permian Basin, all while strengthening our platform for delivering predictable growth and returns.
«We will leverage our deep industry and customer knowledge and
our scale advantage to win.
Brand recognition,
scale advantages, a gargantuan distribution network, and abundant financial resources provide additional sources of strength for this consumer juggernaut.
Wal - Mart's size and
scale advantage will give its new express stores lower prices than competing dollar stores.
Downside protection can take many forms, but some common characteristics include regulatory and
scale advantages, the power of incumbency, and flexible cost structures that provide financial and operational resilience.
We believe the volume of transactions processed through our online legal platform creates
a scale advantage that deepens our knowledge and enables us to improve the quality and depth of the services we provide to our customers.