Comment by bolt7469
3 years ago
In the long run, a company that wastes money on purchases will be beaten in the market by a company that isn't so wasteful. Marketing and sales is not wasteful, but actually creates profit.
3 years ago
In the long run, a company that wastes money on purchases will be beaten in the market by a company that isn't so wasteful. Marketing and sales is not wasteful, but actually creates profit.
I don't believe either of those are true. As it happens, the largest companies capture so much of the market that they can afford being inefficient, and they still have the power to push the competition into a corner.
There are small-margin markets where this doesn't happen, bit then those markets don't have huge companies either.