The connection between how big a company is and how much money it makes can be really tricky. Here are some of the main issues:
Inefficiencies: Big companies often have a lot of rules and layers of management. This can slow down how quickly they make decisions and respond to changes in the market.
Diminishing Returns: When companies grow larger, they might find it harder to keep making as much money. This is called diminishing returns.
Market Saturation: Large companies may run into problems when the market becomes full. This means there are not many new opportunities for them to grow.
Solutions:
The connection between how big a company is and how much money it makes can be really tricky. Here are some of the main issues:
Inefficiencies: Big companies often have a lot of rules and layers of management. This can slow down how quickly they make decisions and respond to changes in the market.
Diminishing Returns: When companies grow larger, they might find it harder to keep making as much money. This is called diminishing returns.
Market Saturation: Large companies may run into problems when the market becomes full. This means there are not many new opportunities for them to grow.
Solutions: