Emergic: Rajesh Jain's Blog

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Business Model Scalability

March 6th, 2006 · No Comments

Nicholas Carr writes about companies Google, eBay and Dell who ‘want to have it all.’

these companies have a faith in the “scalability” of their “business model.” It used to be you’d beat your competitors by achieving greater scale in your operations, enabling you to spread your costs over more products and thus push down the cost of producing each product. Scale was tangible, a manifestation of plant and equipment and other real assets. Today, you strive to beat your competitors by creating an idea or a model that can scale without constraint, expanding easily and flexibly to handle ever more business. Scalability is intangible.

Tags: Management

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