Re:Leaving Google
by capableweb on Saturday October 23, 2021 @05:56AM
(#28967050)
Do you have sort of research/statistics that backs up your statements or are you just echoing what you've heard others say about these "high growth businesses"?
It's basic math. If you are 20% of the industry right now and stay the same size while the industry grows 10x, you become 2% of the industry and a essentially a non-factor. You've yahoo'd yourself.
Re:Leaving Google
by capableweb on Saturday October 23, 2021 @08:42AM
(#28967870)
Basic math right, so if you're 20% of the industry, earning 20% of the industry profits at that scale, and the industry grows 10x, then you have a smaller piece of the industry but your earnings remain the same as the profits grew as well.
I don't have statistics but it's, frankly, blindingly obvious. In a rapidly growing market, staying still as a business isn't a static situation because the landscape around you is changing. You're shrinking in relevance to customers. Even if your margins stay the same, your competitors margins are going down as they scale up, which means they will undercut you on price and you won't be able to do anything about it.
The premise of this discussion is static revenue, but you can't assume that. You'll have to work harder and harder just to stand still, until it becomes unsustainable. You might be able top sustain a business by focusing on a niche specialist market segment, but at that point you're not recognisably Google anymore. As for greed, that's an incredibly naïve way to view it. Nobody creates a long term business plan that aims for irrelevance.
In a high growth business there is no stable static strategy. Staying the same is functionally equivalent to shrinking, in terms of scale effects and relevance, as the rest of the market dwarfs you. As long as you keep growing, you can keep relevant.
If facebook had a $1tn ad business and Google still had $200bn, would Google's business actually be the same as it is now? Would they still be able to hire the cream of graduates? Would they find it as easy to replace lost business from natural attrition with new clients? Would they find it as easy to launch new ad products and get attention for them?