The Growth Burden of a Company with 500 Billion in Revenue

Robin: “A company with 500 billion in revenue that targets 10% annual growth must add 50 billion. It may therefore overlook small opportunities worth only 50–100 million today. An additional 50 million contributes little to total revenue, and a large company may not devote resources to it. That does not mean its decision is wrong: it may be the most rational judgment in the circumstances. Over a longer horizon, however, if today’s 50 million grows into 500 billion in twenty years, the picture changes. The large company has missed its best opportunity to participate.” A saying widely attributed to Jack Ma, though its original source has not been located: “You cannot see it; you cannot understand it; you look down on it; then it is too late.” Robin: “Scale can be an advantage, but it can also be your greatest burden.”