Edit: This question attracted way more interest than I hoped for! I will need some time to go through the comments in the next days, thanks for your efforts everyone. One thing I could grasp from the answers already - it seems to be complicated. There is no one fits all answer.
Under capitalism, it seems companies always need to grow bigger. Why can’t they just say, okay, we have 100 employees and produce a nice product for a specific market and that’s fine?
Or is this only a US megacorp thing where they need to grow to satisfy their shareholders?
Let’s ignore that most of the times the small companies get bought by the large ones.
Profits about all. The size of the company itself, eh. But, profits must grow infinitely apparently.
Eight, but why? Why not create a company that generates, say a $100M a year, building something thata got just a basic level of perpetual demand, and just let that ride.
Instead of either pushing it till the wheels come off,over producing until you crash the market, or trying to spread to so many roles the whole thing colapses, why not just say this company is perfect, and ifnyou want more, just spin up a new entirely separate, unrelated buisness?
Companies like Valve are kinda like that.