Google, Like AT&T or Comcast, Needs Big New Markets

Google has gotten so big — it booked $50 billion in annual revenue in 2012 — that it needs to find new markets in the billions of dollars to continue moving the sales needle. Small markets just won't do.

AT&T, Verizon, Cisco Systems and Comcast have the same problem. As big as they are, new markets and revenue streams smaller than $1 billion annually just aren't worth pursuing. 

If you want to know why specialty providers often thrive in most big markets, that is the reason. There is a threshold below which it simply makes no sense for a large supplier to compete, and those markets are left for other suppliers. 

Of course, there often comes a time when a former specialty market becomes so lucrative that the big fish have to jump in. Those are key transition points, as the former specialty players typically cannot compete, or simply are bought out.