Sustainability of High Growth Rates
High growth rates cannot be sustained indefinitely. Ben McClure suggests that period for which such rates can be sustained can be estimated using the following:
| Competitive Situation | Sustainable period |
|---|---|
| Not very competitive | 1 year |
| Solid company with recognizable brand name | 5 years |
| Company with very high barriers to entry | 10 years |
Read more about this topic: Earnings Growth
Famous quotes containing the words high, growth and/or rates:
“She stood breast high amid the corn,
Clasp’d by the golden light of morn,”
—Thomas Hood (1799–1845)
“From infancy, a growing girl creates a tapestry of ever-deepening and ever- enlarging relationships, with her self at the center. . . . The feminine personality comes to define itself within relationship and connection, where growth includes greater and greater complexities of interaction.”
—Jeanne Elium (20th century)
“Families suffered badly under industrialization, but they survived, and the lives of men, women, and children improved. Children, once marginal and exploited figures, have moved to a position of greater protection and respect,... The historic decline in the overall death rates for children is an astonishing social fact, notwithstanding the disgraceful infant mortality figures for the poor and minorities. Like the decline in death from childbirth for women, this is a stunning achievement.”
—Joseph Featherstone (20th century)