Re:100 years of whatever this will be
by archarios on Thursday December 02, 2021 @04:27PM
(#29422867)
Sears mostly collapsed because they decided to make their internal departments independent competing companies. The departments acted more in their own interests rather than in the interests of the whole company...
Re:100 years of whatever this will be
by goodpoint on Thursday December 02, 2021 @06:09PM
(#29424196)
> but many corporations are set up as hierarchical "business units" that each operate as separate companies within
The overwhelming majority of companies, including Amazon, does not allow different units, departments or teams to compete with each other by providing the same service.
Essentially each BU or even team is a little monopolist.
Soviet Russia actually had to reintroduce markets (https://en.wikipedia.org/wiki/New_Economic_Policy) to dig itself out of the economic hole caused by the hyper-centralized planning of "military communism".
I don't know about the internal workings of Amazon specifically, but many corporations are set up as hierarchical "business units" that each operate as separate companies within: selling their products and services within the company. There's still a market, not everything is determined centrally.
> On the contrary, it scaled pretty well in China and in Soviet Russia, leading to the two cases of the fastest economical growth on the planet. The problem is not scalability.
China grew much faster after it instituted market reforms. I'm not as familiar with Soviet Russia, but I'd be surprised if it grew faster than similar market-based countries during the same time period.