Certain investments are necessary whether serving 100 customers or 100,000. Adding new customers allows the provider to increase the return on these fixed investments. Another advantage to growth is the ability to offer a broader range of services to customers-in economic vernacular, economies of scope. Partnering with another provider allows a small company to avail itself of technologies and competencies to which it may not otherwise have access. The ultimate result is the ability to provide more and higher quality services to customers, increasing their overall level of satisfaction and, subsequently, their loyalty.
Hard data reinforces the benefits of size, as well.
But there also is a dark side to growth. Because cooperatives are organized solely for the economic benefit of their members, customers exhibit a degree of loyalty unseen elsewhere in the industry. Also, since a cooperative's board members live in the community they serve, they are innately aware of customers' needs. Small commercial companies, which also are community based and provide unique value to their customers, face similar hazards. The answer lies in teamwork and cooperation through the establishment of joint ventures and strategic partnerships with other similarly structured entities.