WikiWealth

Lack of scale means that Shutterfly has higher expenses than rivals, because they aren't as large as their rivals. If Shutterfly were larger, they would be able to purchase supplies at a cheaper cost, build their website at a lower price (per customer) and generate higher profits. … "Lack of Scale at Shutterfly is Harmful" will have a long-term negative impact on this entity, which subtracts from the entity's value. "Lack of Scale at Shutterfly is Harmful" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.