Articles
Bigger is Better… Right?
Monday, January 17, 2011 / Business
Throughout history, size has mattered. The biggest armies generally won. Warriors were revered for their size and strength. Small people were turned into court jesters. Those with the most money ruled (and still do). Which does remind me of an old joke I learned in childhood: “Who is bigger? Mr. Bigger or Mr. Bigger’s baby?”
“Mr. Bigger’s baby is a little Bigger.”
Anyway, I have to wonder if there comes a time in our society when we need to think about why things are the way they are, and whether it’s the best for all of us. I think of things like slavery, women’s right to vote, segregation (prejudice in all of its forms for that matter), aristocracy… all the things that people assumed at the time would be that way forever, but in fact, needed to change, and eventually did.
We have applied the “bigger is better” theory to business, I think ever since the stock market took control of our corporate culture. Bigger, or the hope to get bigger, has always been pretty much a requirement for getting on the stock market. Nowadays, very large privately owned companies are an anomaly. And once you’re in the stock market, you better show growth in order to get your stock… bigger.
So there is an emphasis on growth: lots of acquisitions, reporting record sales and profits and so on… all with an end goal… of what? Bigger stock prices, and that’s about it, other than more pay for CEOs and the like.
When I look at our American landscape of business, especially at retail, I see chains and more chains. We have hundreds of malls, all populated with largely the same stores; locally owned businesses in a mall are rare. Drive on any freeway and mostly what you’ll see are chains and more chains. And of course our stores had to get bigger: our landscape is littered with gigantic stores that largely trumpet the same selling point: “We’re huge!”
The system is so geared to ‘Bigger is Better’ that no one is stepping back and asking what this accomplishes. From my point of view, it’s accomplishing a lot of negative things. For one, the disparity between the ultra-rich and the masses in America is growing. Wikipedia reports that “Data from the United States Department of Commerce and Internal Revenue Service indicate that income inequality has been increasing since the 1970s, whereas it had been declining during the mid 20th century. As of 2006, the United States had one of the highest levels of income inequality, as measured through the Gini index, among high income countries, comparable to that of some middle income countries such as Russia or Turkey, being one of only few developed countries where inequality has increased since 1980.”
The other negative accomplishments include the idea that the American public has been trained to prefer “expected mediocrity,” as opposed to the idea of taking a chance of encountering excellence with a small, locally owned enterprise.
We also had the wonderful “too big to fail” concept when the economy tanked, necessitating the US Government to step in and spend our tax dollars to keep them afloat.
As consumers, we also get to enjoy the “benefits” of listening to endless phone trees, automated messages, disinterested customer service personnel, and an increase in the difficulty of finding someone within the gigantic enterprise who will take responsibility for making a tough decision outside policy.
So I’m still wondering… what’s the benefit of “Bigger is Better” to the majority of the American people?
I truly don’t think the stock market was invented in order to create the landscape we see today. But it has become so ingrained in our cultural psyche that few consumers stop to consider what they’re doing when they support the Bigger is Better culture. However, the American public has the power, and always has had the power, to create a change. It’s this simple: very few of these mega-corporations can survive without consumers throwing their dollars into their coffers. If everyone chose a local hamburger joint (if you can find one) instead of McDonalds or Burger King or Wendy’s or Taco Bell, then the local eateries would thrive, and the big boys would have some troubles.
Think about that the next time you choose where to spend your dollars. You can either save your two bucks supporting a giant chain whose home office is in some other city besides your own, supporting the Bigger is Better mentality that has ripped the cultural heart out of most of our hometowns, or you can look for the smaller entities, especially those that might provide excellent service because the owner is right on the floor with the troops.
That’s what I do anyway….
January 22nd, 2011 at 6:54 am
Excellent article. I’ve been advocating this perspective for some time. I hope this resonates, and people begin to change.
February 6th, 2011 at 10:38 am
Excellent, totally agree And what about “free energy” that so many are crying for? As I see it with free energy, we will produce more, consume more, pollute more–creating mountains of land fill and filling the oceans with more crap to kill more life. Sadly, at this point in time, the human species is unable to use free energy, a gift from Nature, wisely.
February 11th, 2011 at 7:58 am
Fellows…and Ladies,
A most impressive commentary…well reasoned, with an intellectually compelling flow from point to point.
I purchased my Mac Pro from you, but the above notions will make me pay closer attention to doing more business with you. (No place in my town to acquire such equipment and software…which sort of seems to be in opposition to your basic argument.)
In any case, ‘thanks’,
Dale
February 11th, 2011 at 8:05 am
I like to see this discussion taking place. Any way to get more businesses involved in talking about these issues? So often I hear people talking about what ‘business’ thinks, when in fact the ways that ultra-large, international business operates is very different that the smaller guys down the block or even the intermediate guys up the road. Unfortunately, smaller in this country often means more expensive, or at least the perception that what you buy will be more expensive. Then again, I would guess that many people’s buying habits have changed so that they buy more often and discard due to planned obsolescence. the list of topics goes on and on. thanks for starting the conversation!
April 8th, 2011 at 3:35 pm
Bigger is better is necessary for culture in which a defining value is “more”. Not enough. More. Smaller thrives where quality is more important than quantity, e.g. the recent “boom” in farmers markets.
April 12th, 2011 at 6:53 am
Well written article, I have held this shopping philosophy for many years. I purchased a Mac Book from your business and I must say you have demonstrated a commitment to excellence in your business. I had an issue with the laptop when I received it when I called your phone number a “real live” person actually answered the phone and you resolved my problems well beyond my “high” expectations. Your company is the kind of company I seek to do business with and I will definitely come to you first when I am ready to purchase a new computer. If more small locally owned business’s had the customer focus that you do I dare say they would put the big chain stores out of business. Keep up the good work!!!
May 17th, 2011 at 11:39 am
Keith,
Thank you so much for the kind words. We’re happy to hear you are gruntled!