What is the Law Of Dimimishing Firms?

'What is the Law Of Diminishing Firms?' by Tony de Bree

Introduction.

According to the so-called ‘Law of Diminishing Firms’, the Laws of Moore and Metcalfe have rapidly increased each other’s enforcement.

Large traditional companies have often ageing and expensive technology infrastructure that keeps them from adopting new hardware, new software and standards at the required speed of the developments in the online platform economy around them and different customers they are servicing themselves.

As the online platform economy is developing and  online & offline markets become more efficient the organisational form (with its complexity) of the traditional large company becomes uneconomic, since companies can only exist and survive to the extend that they can create more customer value & avoid or reduce unnecessary costs more effectively than others.

New companies with the virtual organisation organisational design use ICT to grow and scale online without becoming too big and too slow and have lower organisational costs than these existing large and slow companies.

The Law states that companies can become smaller and smaller by using ICT and transform themselves from a traditional corporate organisation into a virtual organisation. As actually most corporates were forced to do in 1 day because of the Covid-19 crisis and the obligation to work from home!

Practical  ‘Survival Hacks ‘ for CEO’s of corporates on this site.

On this site, you will from now on get practical help on how you as CEO of a corporate can define and implement your own ‘Survival Strategy For Corporates fast. And thus survive this Covid-19 crisis personally and with your company, turning it in time into a virtual organsiation.

Contact me today.

If you have any question or requests regarding organisational economics, organisational costs and how to define the best corporate survival strategy for your corporate and transform it fast into a virtual organisation, please do not hesitate to call me on Skype on tony.de.bree, on 06-34387806 or email me here.

Kind regards,
Tony de Bree

p.s.
Let’s connect on LinkedIn.

About the Author: tonydebree

Tony de Bree is a born survivor. He worked 26 years in global banking & finance. As turnaround manager and in corporate strategy & change, outsourcing, offshore banking & splitting up ABN Amro Bank globally. In 2001 he started as digital business owner selling digital products in 2001 next to his dayjob at ABN Amro Bank as 'plan b'. In 2011, he became independent business owner helping C-level, startups, scaleups & SMEs to survive and grow personally.

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