One factor that plays an important role in justifying growth is scale. Scale provides lower costs so that sellers have more pricing flexibility. Pricing flexibility provides resilience. For example, Starbucks vs. Red Rock Coffee. Scale enables Starbucks to enjoy lower costs for just about all elements of their business and thereby withstand economic cycles. Scale enables them to introduce 'lifestyle' products into their stores. Scale enables them to experiment with more new ideas. It provides them with more data on customer behavior to guide pricing, product introduction, as well as on how to set wages and structure employee benefits.
To be sure, scale also presents business challenges that Red Rock will never see. Product consistency among stores, supply chain management, public financial reporting and all the associated liabilities are non-issues for Red Rock.
I'd also point out, as several others have, that electronics and computing introduce an element of ephemeris into all businesses. Drinking sake is almost a ritual. Ritual relies on heritage in order to be meaningful. Hence, by its nature, it's not to change and claiming an 850 year legacy makes it all the more meaningful. The smartphone in your pocket has the inverse attribute. The older it gets, the more likely you'll infer scorn from your colleagues.
To be sure, scale also presents business challenges that Red Rock will never see. Product consistency among stores, supply chain management, public financial reporting and all the associated liabilities are non-issues for Red Rock.
I'd also point out, as several others have, that electronics and computing introduce an element of ephemeris into all businesses. Drinking sake is almost a ritual. Ritual relies on heritage in order to be meaningful. Hence, by its nature, it's not to change and claiming an 850 year legacy makes it all the more meaningful. The smartphone in your pocket has the inverse attribute. The older it gets, the more likely you'll infer scorn from your colleagues.