We live in an age of growing corporate inequality, with a few dominant companies and many underperformers.
The superstar archetype is Google, established in 1998 with the aim of rank-ordering web pages in what was then the nascent industry of search.By the beginning of the 21st century, Google had no revenues and no established business model.
Fast-forward 18 years and a few hundred acquisitions, and Alphabet, Google’s parent company, has a market value in excess of US$750 billion.In almost every industry, a small number of companies are capturing the lion’s share of profits.
The top 10 percent of companies worldwide with more than $1 billion in revenues (when ranked by profit) earned 80 percent of all economic profits from 2014 to 2016, according to a recent study by the McKinsey Global Institute.
The 40 biggest companies in the Fortune 500 captured 52 percent of the total profit earned by all the corporations on that list, according to an analysis of the 2019 ranking by Fortune.This leaves less and less for the smaller fish to feed on.
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