Comment by soup10 | Hacker News Reader

Comment by soup10 | Hacker News Reader

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I naturally prefer small firms because of the whole cog in the machine problem of big corps. But the article brings up an interesting point to me, bigger sometimes is better. I like to think that most mega-corps in the U.S. routinely abuse their monopoly position and stifle competition, and they certainly do to an extent.

On the other hand though, the scenario where small firms are the norm doesn't seem that great either. Let's say you create a new pharmacy thats like 10x better than any other pharmacy and given the option everyone would go to you. If you don't grow big(either by choice, or regulation) and put CVS out of business. Then your stifling progress in a sense and everyone is worse off for it.

Heh, I never thought I'd argue in defense of big business.

If you can make a good pharmacy that is 10x better than any other in town, you probably can grow to other towns. But what makes you 10x better? Some good procedure that is copyable, or your personal management skills? It it's procedure, the competitors can copy it also, so this growing point is kind of invalid. If it's your personal management skills, this growing point is again invalid.

In good competition there should be a threat of someone growing big because they make things better. So pharmacies would copy all good procedures from each other. But that growth should never actually happen.

> But what makes you 10x better?

here pharmacy and book chains define: Better = cheaper

There are some states in US, where alcohol can only sold at special dealers, thus protecting their small business. Books and medicals have a fixed price, and medicals must only be sold in pharmacies in Germany. There are some chains also. They have a better profit, because they buy in higher numbers, but competing at the customer most small shops survive, because they are better in terms that are a family doing a lifestyle business.

>It it's procedure, the competitors can copy it also, so this growing point is kind of invalid.

As someone smart said, you have to ram a good idea down people's throats.

I'd say growing is ramming.

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