Growth company

Growth company
See also

Growth company is a business which generates increasing earnings. The rate of increase should be faster than overall economy. Investors look for growth companies, because especially in the first phase of growth they can be profitable investment. However, when everyone on the market knows that the company is profitable, it is better to think twice before purchase - it can be worth less than market price.

Growth companies can be found more often in new technologies. If the company enters completely new market it can easily increase sales and rapidly grows. On older markets, where there are many competitors, it is very difficult to gain such an advantage. Today large companies look for future growth companies among start-ups. They are able to buy many start-ups cheap, before they grow. Even if some of them won't bring earnings, they will earn on others.

The most known growth companies are e.g. Tesla, Amazon, Apple, Alphabet.

Apple[edit]

Apple's impact on economics and culture competes with the most important companies in the United States. Apple is a company that creates standards. It's all thanks to their perception of technology and creation. By introducing upgrades to homes, Apple and Samsung make lawsuits. They became some kind of opponents. Investors and technologists are wondering how the Apple will maintain its position. Buyers will expect more and more revolutionary devices. Some people have reported that this company wants to move the television market. Through the device that will be able to transfer it live. Just like Microsoft, GM, IBM and other major companies, Apple has to face profits. The increase in profit results in a heavier maintenance of the product culture and its development.

Tesla[edit]

It took only five years for Tesla to switch from bankruptcy to the big sale of electric cars. This jump generates questions about the future of motorization. Tesla's assumption from the very beginning was to produce cars with an electric-powered engine. The vehicle that offers among others: attractiveness, high efficiency, low maintenance costs. The first prototypes of Tesla vehicles were made thanks to Elon Musk, his $6.5 million contribution and storage in Silicon Valley.

The expansion of production capabilities has always required strategic partners from Tesla. It is not only by economics but also by the limits of knowledge. In 2008, they started working with Daimler. They created a battery and drive system for their fleet, which is electrically powered. Another example is working with Toyota and Panasonic. Working with Japanese gives Tesla the opportunity to supply batteries for many years and building a Giga factory.

Amazon[edit]

The Walmart store did not have any particular competition until Amazon appeared. The former sales leader is trying to introduce technology. Walmart and Amazon are fighting for the crown of online commerce. Everyone wants to have the best: engineers, product prices as well as the delivery time. They want to have power not only on online trade but on trade in general. Amazon is building more and more warehouses while Walmart pays more and more money into technology. The actions of both companies point to an important combination of stationary and online commerce.

References[edit]

Author: Aneta Suder

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