Friday, February 6, 2015

Fierce Competition Skews Distribution of Company Sizes

When competition over resources sours in a population, the size distribution of its individuals tends to become skewed, giving rise to a large number of small size individuals and a few large ones.

In the business world, fierce competition may result in a similar pattern. A large number of small size businesses working in a specific over-saturated market tend to show up while a few very large players emerge.