Scale Paradox

When companies pursue exponential growth, the infrastructure costs supporting that growth scale exponentially as well, causing revenue growth to lag behind cost expansion. Even with massive capital infusions, unit economics can deteriorate, trapping the company in a "bigger but more expensive" bind—not due to poor execution, but as a structural limitation of the business model itself.

Read the daily articles behind this idea on the Chinese edition.

Related principles

• → Links
  Value Chain vs. Cultural Ecosystem Asymmetry
• → Links
  Technology Application Layer Transition
• → Links
  Gradient Incentive & Ecosystem Stratification
• ↗ Extends
  Organizational Coordination Cost Paradox
• → Links
  Revenue Quality Paradox
• → Links
  Nonlinear Demand Growth & Supply Chain Lag Risk
• → Links
  Growth Bifurcation
• ↺ Counters
  Capital Deepening Under Supply Constraint