Diseconomies Of Scale

"Economics of scale": when costs per unit-of-whatever created go down as total output increases. Economies of scale is the reason Walmart and Amazon and all big companies can make stuff so much cheaper than the little guys; they’ve got lots of capital and resources, making each thing cheaper to make, the bigger they get. So...diseconomies of scale.

Yep, it's as bad as it sounds.

Diseconomies of scale is when a company grows sooooo large it actually starts costing more money per additional unit-of-whatever created, the more of whatever they make. Diseconomies of scale is the opposite of economies of scale: making more and more starts to look like a bad idea rather than a good idea.

How could this happen?! Well, really, really big companies have a lot of resources and people to manage. It’s easy to see how, if it got too big, and that big-ness wasn’t managed well, it could become bloated and inefficient, making things more expensive rather than more efficient.