As managers pursue market share, they find that the boundaries of their markets keep expanding at the same time. They see in The Magic Mirror that they can approach, but never reach, 100% market share. This is the reason why their appetite for growth is insatiable and why their firms become too big. In this chapter, I demonstrate their relentless pursuit of size. I show that managers prefer buying capacity (through mergers and acquisitions) to making capacity (through internal growth). Either way, their firms become big.
KeywordsEmpire building Make growth Buy growth Limit to growth
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