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Originally Posted by qed  Once you hit major sales figures (hundreds of millions of dollars in revenue), it gets harder and harder to get more sales, investors lose interest when growth slows down, the company tries everything under the sun to keep its valuation up (especially when sales growth is next to impossible)... And you get the mess we have today. |
When large companies stop growing they start buying smaller companies that have growth potential. This is an important part of the business cycle for many companies (to get bought). Often they can't grow any more without additional injection of money, and can't get enough revenue on their own.
Of course that creates ever bigger conglomerates and that's ultimately not good for consumers. Huge corporations on average tend to have much worse customer service and products/services than smaller companies, much more bureaucracy, much more wasted money, and so on. Uncontrolled acquisitions and mergers between large corporations can also be bad for consumers which is why regulation is necessary. However, despite these issues regulated capitalism is still the best value generation system in history.