Businesses have pretty much always worked this way. If you accept that efficiencies of scale are a thing, that network effects are real, and that capital breeds capital, then you pretty much arrive at the conclusion that capitalist systems will tend to grow towards consolidation and concentration of power. Disruption is always a thing - corporations are still run by humans and still subject to some weaknesses of human judgement, but concentration of capital and power will tend to feedback on itself.
For example, take a look at the list of brands owned by P&G and Johnson&Johnson.
Calculation problems are a thing too, though. A huge corporation is still central planning, which isn't very efficient. That's why disruption happens, at a large scale there's a lot more room for error. That is, if they really are subject to market forces, which is always a good thing to question.
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Businesses have pretty much always worked this way. If you accept that efficiencies of scale are a thing, that network effects are real, and that capital breeds capital, then you pretty much arrive at the conclusion that capitalist systems will tend to grow towards consolidation and concentration of power. Disruption is always a thing - corporations are still run by humans and still subject to some weaknesses of human judgement, but concentration of capital and power will tend to feedback on itself.
For example, take a look at the list of brands owned by P&G and Johnson&Johnson.
Calculation problems are a thing too, though. A huge corporation is still central planning, which isn't very efficient. That's why disruption happens, at a large scale there's a lot more room for error. That is, if they really are subject to market forces, which is always a good thing to question.