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What you can learn from the market capitalisation of tech companies

By Hassan Khalid
15/08/2019

What you can learn from the market capitalisation of tech companies

As of 2019, half of the top ten biggest companies in the world by market capitalisation are tech companies. Apple earns the top spot as the first company to surpass a market cap of $1 trillion in 2018. It is followed by Alphabet, Google’s new holding company for riskier tech adventures away from its search and advertising business. Then comes Microsoft, Amazon, Berkshire Hathaway, and Facebook. 

What is staggering about this is the list’s move away from oil companies, financial firms, and the occasional retailer to tech. This huge creation of wealth is likely partially due to one powerful tool tech companies have over their competitors. It is the ability to scale and develop new services faster and more effectively than brick-and-mortar companies. 

Scale

Scaling is trendy. But, today, it is achievable in ways never seen before. Visual Capitalist gives the example of Walmart. They had to build new stores, expand complex supply chains, and hire new employees to reach high levels of growth. This takes a lot of time, money, and manpower. In comparison, Amazon can bring in more revenue without the work or risk Walmart faces due to their digital setup. It allows them to avoid the issues faced by other companies with thousands of employees. They create new products and take them to market at a speed and cost Walmart could only dream of. But this isn’t their only advantage.

Branding

Apple, Microsoft, Google, Amazon, and other popular tech companies have amassed the kind of following where people queue up a day in advance to get their hands on their new product. Even if these huge companies don’t have products in a certain tech sector, people assume they do, because they have a reputation of being innovative tech companies due to fantastic branding. Put simply, potential customers often assume leading brands offer certain products and services and consider them before they consider brands they don’t know. The formula might look something like this:

Competent products + trust in brand = domination

But how do you make this, and the ability to scale, work for your company?

Learning from tech

While your business may not have the reputation of Apple or Amazon, there are ways you can implement the mindset of tech companies into your own. The first starts with taking your digital presence seriously, not just as a place to provide brand information. It is an integral part of your marketing and sales. A bespoke platform, built for scalability and brand definition, gives you the freedom to grow and change direction while monitoring your customer relationships. 

You may also consider the way you build a strong corporate brand. Look at Google. The place where you store your documents is called Google Drive, the place where you write is called Google Docs. There is Google Mail, Google Slides, Google AdWords, Google Analytics, Google everything, continually pushing the consumer back to the brand. These products are easily available. If you find yourself on Google Drive, it is only a matter of time before you end up on Google Docs due to their bespoke interconnectivity, designed for this purpose. Apple is also among the variety of tech companies who use this tactic to spread like beneficial bacteria in people’s lives. 

Whether you are a tech company, a retail company, a financial company, or anything in between, it is clear there is something to learn from the way tech companies have dominated the world. A scalable, tailored online presence can help you increase your revenue and improve your brand presence, helping your market share grow. 

Createk builds bespoke software for companies looking to revolutionise their digital presence and processes. By coming up with creative solutions using Ruby on Rails, we build scalable, influential applications that give businesses the edge they need to reach the top of their industry. For more information get in touch on 0330 995 0685 or visit our website.

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