Meaning: This quote by Charles Revson, the founder of Revlon, reflects a fundamental reality in the world of business and economics. It succinctly captures the concept of industry consolidation and the tendency for larger companies to grow even larger while smaller ones struggle to survive or are absorbed by their larger counterparts. This phenomenon is commonly referred to as "the big getting bigger" and "the small getting wiped out."

The quote speaks to the dynamics of competition and market forces that shape the business landscape. In any industry, there is a natural inclination for successful companies to expand and gain a larger market share, often at the expense of their smaller competitors. This can be attributed to various factors, including economies of scale, access to resources, brand recognition, and competitive advantages that larger companies possess.

One of the key drivers of this trend is the concept of economies of scale. As companies grow in size, they often benefit from lower average costs due to their ability to spread fixed costs over a larger output. This can give them a significant cost advantage over smaller competitors, making it difficult for the latter to compete on price and profitability. Additionally, larger companies may have greater bargaining power with suppliers, enabling them to secure better terms and prices for inputs, further solidifying their competitive position.

Furthermore, larger companies often have greater access to capital, which allows them to invest in research and development, marketing, and expansion into new markets. This can lead to product innovation and diversification, enhancing their competitive edge and making it challenging for smaller firms to keep up. Additionally, the larger companies can leverage their established brand recognition and customer loyalty to maintain and expand their market share, making it harder for smaller players to attract and retain customers.

In some cases, the quote also alludes to the phenomenon of industry consolidation, where larger companies acquire or merge with smaller ones, leading to a reduction in the number of competitors in the market. This consolidation can result in increased market concentration, potentially leading to less competition and higher barriers to entry for new players. As a result, smaller businesses may find it increasingly difficult to compete and survive in such an environment, leading to their eventual demise or acquisition by larger firms.

It is important to note that while the quote reflects a prevalent trend in the business world, it is not an absolute certainty. There are instances where smaller companies are able to carve out niche markets, differentiate themselves through innovation or agility, and compete effectively against their larger counterparts. Additionally, regulatory measures and antitrust laws in many countries aim to promote competition and prevent monopolistic practices, creating opportunities for smaller businesses to thrive.

In conclusion, Charles Revson's quote encapsulates the enduring reality of business dynamics, where the big are poised to grow even bigger while the small face significant challenges in sustaining their competitive position. The forces of economies of scale, access to resources, and competitive advantages contribute to this trend, shaping the business landscape in various industries. While the quote may seem daunting for smaller businesses, it also underscores the importance of innovation, agility, and strategic positioning to thrive in a competitive market environment.