| > Due to population increase the revenues would grow. When a company stops growing and increasing revenue its not keeping up with population increase and may as well be dying. I'd like to retort this because I think it's important to have a bit of perspective here: 1. Population growth doesn't imply market growth. If I sell polio treatment, my market are the number of people with polio, which thankfully hasn't been correlated with population growth. 2. Market growth doesn't imply revenue growth. Competition. 3. Revenue growth doesn't imply profit growth. Say, for example, I run a company building cheap computers for the children of low-income families. As I move into new countries and expand my revenue I might want to, instead of increasing profits, make my computers cheaper so more children have access to them. 2 and 3 are usually not true when companies are trying to maximize profits, but I don't think 1 should be at all rare. Anyway, this is besides where the discussion was meant to go, but thought I'd share. |