You might have heard the phrase—satisfaction strikes only for a while. Likewise, Earth’s industrial giants are defining it very well. Every enterprise is anyhow in the race of getting superior to each other. You may call it grit to gain success or greed of money, but it won’t change the fact that at the end it’s all about revenue generation. And fortunately, this competition drives businesses to produce more qualitative product for the consumers. Meanwhile, it has recently reported that Apple Inc. has attained the milestone of $1 trillion market capitalization. Right now, it is leading in the markets and has set a benchmark for its rivalries.
This so-called industrial race is not so new phenomena—it has been going on since the inception of industrial revolution. But, the competition got more intense when personal computing by Apple Computers was introduced. Right now, industrial giants like Facebook, Amazon, Microsoft, Alphabet and Alibaba are at the top in the success battle for reaching $1 trillion. It was suspense awhile back that which company will be the first to reach this milestone, but now it’s crystal clear. Besides, who will be the second one, is the most concerned discussion in the market right now. According to the numbers, Amazon might take the follow up of becoming the second company to attain USD 1 trillion m-cap yet, we can’t be so sure of it. You might never know when odds get reversed. Meanwhile, there are many small businesses that got the potential of making a difference but, they lack a proper pathway.
Let’s have a look on some of the factors that helps a business to achieve more valuation.
Factors require being at top
Hypergrowth: It’s all about growth structure; a company can only be framed in hypergrowth state if and only if, it maintains 40%+ average annual growth rate for more than one year. It requires constant efforts and proper growth structure for attaining a perfect hypergrowth status. It helps a company to predict the possible future which might prove beneficial to it.
Read More [What is Hypergrowth?]
Quality Management: Quality of a product determines the quality of the company. This phrase might be twisted but do clarifies that quality management is the most essential factor in an enterprise. Anyhow, if a company follows up the aspects of quality management then, attaining pocket-full turnouts will be much easier. A constant efforts put forth by the companies executives will work as cumulative force to drive business more efficiently. Management discussion and analysis (MD&A), as per its name suggests, it takes a closer look at the performance history of the company and predicts a proper growth structure as per the quality odds.
Technologies have the potential to shape or break a company.
Technology evolves with time; you might have witnessed some techs which has created a revolution in the business-sector. But, at a same time many enterprises had to face delegations due to incompatibility with the new advancements. This is the age of continuous advancement of technologies, if an enterprise doesn’t catch-up with it then they may create ruckus in the industry. Hence, a company must be prepared and be able to implement technologies from time to time. Virtual and Augmented Reality can be stated as one of the real-time disruptive technologies.
Competition Drives the Business
Michael Potter, professor of Logic in the Philosophy Faculty at Cambridge University coined the termed competition advantage. It plays an important role in driving a business. Apart from creating an enthusiasm to become best of the best, competition offers loads of advantages. It helps the company to easily modulate the growth structure in order to increase more revenue, more profits, and proper efficient processes. With the competitive advantage, all the activities of the company get aligned with organizational strategy. Besides, it aids an enterprise to generate benefits for a good tenure of 5-10 years. Company must get along with competitive advantage, because it indirectly also benefits in customer satisfaction.