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4 December, 03:45

How were large corporations able to operate in poor economic times

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  1. 4 December, 07:37
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    To operate in poor economic times, size becomes even more a competitive advantage for corporation, allowing them a series of options to maximize revenue and minimize costs:

    1. They can negotiate better prices and conditions with suppliers;

    2. They can offer cheap products using apportionment economy;

    3. They can offer lower wages, as they have larger bargaining powers with government and unions;

    4. They can protect their market share against smaller competition;

    5. They have better access to credit;

    6. They can operate on a loss for a long period of time.
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