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The End of Scale
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The End of Scale

by Kevin Maney, Hemant Taneja
April 2018
Intermediate to advanced
6 pages
20m
English
MIT Sloan Management Review
Content preview from The End of Scale

The End of Scale

New technology-driven business models are undercutting the traditional advantages of economies of scale. But large companies still have strengths to exploit — if they move quickly.

For more than a century, economies of scale made the corporation an ideal engine of business. But now, a flurry of important new technologies, accelerated by artificial intelligence (AI), is turning economies of scale inside out. Business in the century ahead will be driven by economies of unscale, in which the traditional competitive advantages of size are turned on their head.

Economies of unscale are enabled by two complementary market forces: the emergence of platforms and technologies that can be rented ...

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ISBN: 53863MIT59321