A start-up wireless provider can connect you to any phone in the world. So a local screwdriver shop can compete with Compaq and Dell. A huge market for business support systems now provides resources and capabilities formerly found only in giant firms. In addition to the widespread availability of venture capital and other forms of financing, entrepreneurial start-ups can access contract manufacturing, transaction processing, order fulfillment, and sophisticated management and marketing advice. These firms could acquire support services from large-scale providers, so they did not have to grow to capture these scale economies.
Value creation is the new great game.
Cost reduction still matters. But more important is creating new forms of value for customers, leading to sustained profit growth. Creating customer value involves capabilities different from those of a scale-focused enterprise. The transience of opportunity. Business has become a movable feast.