Pfizer buys Warner-Lambert. Alcoa purchases Reynolds Metals. Nestles S.A. merges with Ralston Purina. Each of these is a recent example of large companies combining with other large companies. Does this imply that small is not necessarily beautiful? Are mechanistic forms winning the "survival of the fittest" battle? What are the implications of this consolidation trend for organizational behavior?
Does this imply that small is not necessarily beautiful?
No, because today knowledge and its application is powerful competitive weapon. If start ups like google can create a niche by harnessing innovative application of technology to address a need, this can lead to having impact on existing big units. Therefore small can still be beautiful in this knowledge era. Big units are also fast able to adopt the methods of small units to harness opportunities. Knowledge is one area which can't be ...
This solution explains why small companies can survive in an age of consolidation and seemingly survival of the fittest.