• How will revenue be distributed?

  • Sources:

    Revenue distribution follows a power law curve, meaning a small number of products or countries generate the majority of the revenue. For example, Google Search and YouTube account for most of Google's revenue, while its other products contribute minimally 1.

    Companies need to focus on these key revenue drivers and manage resources accordingly. Good management can enhance productivity and revenue distribution, even in smaller organizations, as illustrated by Nvidia's efficient use of a small headcount relative to its market cap.

    Historical examples such as Hewlett-Packard also show that organizations can scale effectively by structuring into independently run businesses, though such strategies have limits due to market dynamics 1.

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