Experience Curve
#big-ideas #productivity #competing
Ever wonder why some businesses thrive while others falter? It’s because of scale. Business schools teach the =="experience curve"—a phenomenon where increased volume leads to improved efficiency.==
As Munger puts it, "The very nature of things is that if you get a whole lot of volume through your operation, you get better at processing that volume." This isn't just a minor edge; it's an "enormous advantage" that can determine a company's fate.
When motivated individuals tackle complex tasks in increasing quantities, they inevitably find ways to streamline and perfect their processes.