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The Law of Increasing Returns

In: Business in a Virtual World

Author

Listed:
  • Fiona Czerniawska
  • Gavin Potter

Abstract

We will be examining in subsequent chapters how you can exploit information to give you a competitive advantage – using information to exploit the complexity of your business; making best use of the infosphere of your products or knowledge capital; moving away from the physical aspects of your business. Each of these approaches is capable of improving business performance significantly in isolation; applied together, the benefits they can generate are even greater. However, before going on to look in detail at these, it is important that we understand the basis on which these benefits are produced, and that we understand how and why the virtual business is capable of out-performing conventional physical businesses. We need to look at the ‘law of increasing returns’.

Suggested Citation

  • Fiona Czerniawska & Gavin Potter, 1998. "The Law of Increasing Returns," Palgrave Macmillan Books, in: Business in a Virtual World, chapter 5, pages 52-63, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50933-7_5
    DOI: 10.1057/9780230509337_5
    as

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