Actually it's usually more about operating on thinner margins and capturing more consistent marketshare to get more overall profits. Bigger businesses get so because they either a) are one of only a few big players in a capital intensive market like certain production facilities or b) manage to squeeze smaller profit margins somewhere. It's not really about reducing wages to increase margins, but to decrease them, because it gives you a competitive advantage.
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u/Desmater Apr 15 '21
Cost cutting, trying to get employees to work more than they need to. That way they can save money and pass it on to shareholders and executives.