Henderson contended that the Henderson contended that the

greater an organization’s size greater an organization’s size

and experience, the greater its and experience, the greater its
competitive advantage. competitive advantage.

Michael Bruce
Porter Henderson

By By

Theory of Business Theory of

the value Strategy increasing
chain return

These theories are fast

becoming outdated.

Individuals collaborating online often can do a better

job more cheaply than central hierarchical The Internet has slashed transaction Causing
organizations, antiquating the Porter-Henderson costs – specifically, data processing leaving less room to economize
framework and annihilating certain types of
economies of scale. and communication costs

allowing value chain

members to attack other
members’ positions

reducing the need for

vertically integrated
organizations