[huijzer]

Yes it’s usually called economies of scale. Classic example is building a big factory with investor money. The big factory can then outcompete competitors due to having bigger scale. Carnegie did this a century ago. Nowadays we see this a lot with Venture Capital. Companies just write some software and give the product away for free so that the competition has no chance. Microsoft also is great at this for example with giving away GitHub for free.

If you want to read more about “powers” like this I can recommend 7 Powers by Hamilton Helmer.

[bobthepanda]

The counterbalance is that it takes a long time to steer a big ship, and economies of scale can actually hurt you. If you are building the wrong widget it doesn't really matter that you can make a billion of them. Even scaling down a big business might not work if most of your costs are fixed.