As companies get larger, it becomes more difficult to sustain high percentage growth rates in revenues for two reasons. The first is that the same percentage growth rate will require larger and larger absolute changes in revenues each period and thus will be more difficult to deliver. The second is that a company's success will attract the attention of other firms; the resulting competition will act as a damper on growth.
Growth (Part 2): Scaling up Growth
Growth (Part 2): Scaling up Growth
Growth (Part 2): Scaling up Growth
As companies get larger, it becomes more difficult to sustain high percentage growth rates in revenues for two reasons. The first is that the same percentage growth rate will require larger and larger absolute changes in revenues each period and thus will be more difficult to deliver. The second is that a company's success will attract the attention of other firms; the resulting competition will act as a damper on growth.