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Aug 28, 2009


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Leadership Connextions International

Have you read Seth Godin's book, Small is the New Big. He makes a pretty interesting case that the world of the Internet is creating a "long tail" of opportunities for niche markets that small organizations can provide in a way that large organizations cannot. He also is skeptical about the change capacity of these large organizations to keep up with the accelerating global world.

Michael W. Kruse

Haven't read Godin's book yet but I know the gist of it. I think he is probably right. In fact, I suspect the days of the big multinational conglomerates are coming to end. May be a generation or two but I think its coming.

Jesse Blocher

I don't share your confidence about the end of large multinational organizations.
Check out this article by Simon Johnson on Big Banks and how they look suspiciously influential in the government:

He draws on his experience in the IMF dealing with smaller countries financial crises. The parallels are eerie. There is no real proof, obviously, but I think that large corporations are most likely here to stay.

However, for a bit of optimism, I'd like to point out that most research has shown that recessions are prime breeding grounds for the next set of transformative companies/ideas. Because venture capital gets more picky, lesser ideas are not funded and thus there is less noise. Apple and Microsoft were both founded during the economic trauma of the late 1970's.

Michael W. Kruse

It will be interesting to see what happens. I'm thinking like 2040 and beyond (Far enough out no one can call me on it.) :-)

As communication technology continues to improve and the open source approach takes over more and more of what used to be intellectual property issues, I think many of the advantages that these vertically integrated and globally expansive firms have will fade.

Looks like an interesting article. I give it a look.

I think your are right about the recession given birth to emerging new companies.

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