Diversifying Dependence on Large Corporations

In a world dominated by massive corporations, relying solely on one major corporation for business can severely damage enterprise value and predictability. To mitigate risks, it is crucial to diversify across various major corporations rather than being completely dependent on a single one. By partnering with multiple large corporations like Amazon, Apple, Facebook, Google, Walmart, and Target, businesses can create a portfolio that can withstand challenges when one or more corporations underperform. Diversification helps in retaining enterprise value and stability, reducing the negative impact if a specific corporation faces issues. This strategy allows for negotiating power, growth through other channels, and less vulnerability to the performance of a single corporation. Investors hesitate to fund businesses with high concentration risk on one platform, acknowledging the potential consequences of platform failure. While it is challenging to entirely avoid dependence on large corporations, diversifying exposure to each of them can lessen over-reliance on any single corporation.