Friday 24 August 2012

The doubling rule - why Amazon will outgrow Walmart, soon...!

The doubling rule, or Rule-of-70, provides a simple way to calculate the approximate number of years it takes for the level of a variable growing at a constant rate to double in size.
This rule states N = 70/rate-of-growth, where N is the number of years it takes to double.
More detailed maths treatment here
The same rule can be extended to the Rule-of-110  (trebling size) and the Rule-of-140 (quadrupling size).

Amazon example:
Given Amazon’s CAGR (Compound Annual Growth Rate) of 26%, the Rule-of-140 shows that based on its current sales of $48bn, its sales will be $192bn in 5.4 years.
By comparison, Walmart’s 2012 sales were $444bn, with a CAGR of 3.1%...
Amazing Amazon catchup here 

Exponential growth really explained…
For more about how exponential growth and the Rule-of-70 can explain and impact every aspect of your life, upside and downside, we urge you to invest 10 minutes in watching the above vid. (4.5m views to date...)

Nothing will seem the same again…ever.

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