Multidimensional Organization - Cause

Cause

The most basic reason for the rise of the multidimensional organization is that, due to the fall in costs of information, customers start to behave in multidimensional ways in terms of their preferences, in the ways in which they select and purchase goods and services, make use of distribution channels, etc. To answer this increasing variety in customer behavior, both in private consumers and between businesses, firms need to increase their internal variety.

The multidimensional organization also answers the emergence of multidimensional strategies, in which firms not only pursue market dominance and superior efficiency, but also need to exploit economies of scale.