The focus of The Economist
this week is on big companies versus small companies. Incumbents versus startups. I shared this a few days ago on Twitter
and it’s worth reposting:
“In 1990 the top three carmakers in Detroit between them had nominal revenues of $250 billion, a market capitalisation of $36 billion and 1.2m employees. In 2014 the top three companies in Silicon Valley had revenues of $247 billion and a market capitalisation of over $1 trillion but just 137,000 employees.”
It’s something we all probably know, and yet, when put in context, it’s crazy. Silicon Valley is creating the same revenue (and immensely more shareholder value) with roughly 1/10th of the workforce when compared to the automobile industry in the 1990s (which wasn’t exactly the heyday, but still…).