Monday, January 26, 2015

Businesses Grow in a Sigmoidal Curve Pattern

Many factors affect the growth of a population of organisms. One factor being the competition among members of that species over resources available at a specific area. Other factors may include predators, disease and changes in conditions at the specified area. Competition from populations of other species living in the same area would also be an additional factor affecting the growth of the population under study. A growth rate of a population based purely on competition among its members in a specific area would often follow a sigmoidal curve.

In business, the same sigmoid curve can be observed when observing the growth of businesses within a given market. The competition among those companies targeting the same market would result in a similar growth pattern for such companies as that observed in the case of living organisms of the same species living together in the same area.