The $1 Trillion Race: What does it take to be a Billion Dollar Company?
The Technology business has exploded. The top 3 companies with the highest market capitalization in the world are Apple, Google and Microsoft in that order. The top ten include Facebook and Amazon as well. It’s clear that Technology companies have trumped all traditional Industries like Steel, Petroleum and Telecom. Companies in the above-mentioned Industries do make money, but clearly not to the level of the ones in the Technology business.
This kind of growth has all spurred a topic, which is which one of these companies will reach the $1 Trillion dollar mark. To give an Idea of how much a Trillion dollars is, it’s $1000 Billion!
Lets break down the qualities of A Billion-Dollar Company, and then let’s try to break down what it’ll take to reach a trillion. For this simple exercise we take Apple, Google, Microsoft, Facebook and Amazon.
The Billion Dollar Companies are :
Leaders in their Market
The Technology companies, all of them in the top ten are the leader in their segment. Apple is the best hardware company in the world with most devices sold. Google is the largest search engine in the world; Amazon is the largest e-commerce store in the world with presence in multiple countries. Facebook is the largest social network in the world. Microsoft is the largest office suite and OS company in the world (Windows still rules the roost).
This is also another obvious point; these companies cannot be on the top by replicating somebody else’s method of success.The Innovations of most of these companies are pretty obvious, except that of Microsoft. Microsoft at one point, more than a decade and half back were worth $675 Billion. Now they are at $300 Billion odd. This shows clearly that these companies have to keep on Innovating constantly otherwise they lose.
Strong Leaders with great Vision
This is something that holds true. Most of the companies in the list have or have had iconic leaders who were the founders and steered their company with their vision. Bill Gates at his prime made Microsoft the largest company in the world, he stepped down and the company fell apart. Steve Jobs bought Apple back from the dead and made it the most valuable company in the world with a market cap of $750 Billion in February 2015. It still is succeeding from his vision. Facebook and Amazon still have their founders and have only done better as the years have gone by.
Are from the United States
The world will hate it, but it’s the truth. Silicon Valley is still the most innovative location on earth. These companies born here not only take over United States but take over the world. China’s top startups are market leaders only in China; they do not have much of a presence outside China and that is also because China is a walled garden. The products from American companies reach worldwide.
In our next article, let’s discuss what it takes to be a trillion dollar company.
Let’s assume these are the points that have brought these companies to the top and let’s make another hypothetical assumption that this is what will continue.