The 5 star companies of the USA
In the following we will take a peek inside the 5 biggest companies in the USA, explore their past, present and reflect upon their possible future. Some say that size doesn’t matter… but in certain domains it definitely does. While we might be tempted to look for similarities between these companies, I believe that a key to their success also lies in their differences.
1. Wallmart
Unsurprisingly to most people, Wallmart is at the top of the list with $485.3bn in revenue. The history of the largest retail service in the world begins in 1950, when Sam Walton bought a store in Arkansas from Luther E. Harrison. But it is only in 1962 when the foundation stone for Wallmart was laid with the first discount store. This then quickly expanded to be present in each and every US state in only 12 years, after which followed Canada. But the success of Wallmart was based on a controversial idea that lower prices coupled with outstanding service would ultimately increase profit. But things did not stop there, the company kept on implementing innovations throughout the years. Also, it quickly became known as a client-focused business and won the loyalty (hearts) of many. The principles that set Wallmart apart from its competitors are just as valid for our modern society as they were half a century ago, to which if you add the history and legacy, its future (still) looks pretty bright. “Mr. Sam” as he is known to many, believed that a successful business can be achieved by simply following 10 steps. Sounds simple enough, doesn’t it?
Some impressive stats:
- 260 million customers
- over 11,000 stores
- in 28 countries
- internet-based service in 11 countries
2. Berkshire Hathaway
Not quite in a close second, but the next entry nonetheless, is Berkshire Hathaway with its revenue of $222.9bn. Basically, we are talking about a holding company that unites under its umbrella numerous other businesses. The headquarters is seated at Omaha, Nebraska. Here we can see a radically different strategy and business path than in the previous one. Warren Buffet, the chairman and CEO, rose to become the main shareholder of the company by the ‘60s and ran a strong campaign to branch out investments into other businesses. Regarding advice for stock investment, it is well known that Buffet abstains from any advice, however, if you are curious about what he has to say about saving money, you can read his letter here: https://www.berkshirehathaway.com/message.html.
Companies that are completely owned by Berkshire Hathaway:
- Geico
- Brooks
- Duracell
- Dairy Queen
- BNSF Railway
Companies that are partially owned by Berkshire Hathaway:
- American Airlines Group Inc. (9.8%)
- American Express (18.2%)
- Apple (5.4%)
- Bank of America Corp. (9.4%)
- The Coca-Cola Company (9.4%)
3. Apple
Next in, with a $217.5bn revenue is Apple. The multinational technology company entered history by becoming the first to hit the trillion-dollar market cap and continues to be one of the most popular and valuable companies. Based in Cupertino, California, the company is known for the design, development and selling of a variety of products and offering a wide range of services (see the list below). Experts tend to agree that what propelled Apple to its unparalleled success was its focus on consumer experience and satisfaction. Also, the controversy surrounding the brand and its owner might have had a say in this. I believe that the story of Apple with all of its struggles is a good example of perseverance and endurance, and it shows that it is certainly not easy to overcome hardships.
The services and products Apple provides can be broken down in three main categories: hardware products, software, online services. Now let’s look at the top stars of each category.
Some of Apple’s most popular hardware products:
- Mac personal computer
- iPhone
- Apple Watch
- iPad
- AirPods (wireless earbuds)
Some of its most popular software:
- iOS operating system
- Safari web browser
- iTunes media player
From the online services we can mention:
- Apple Store
- iTunes Store
- iOS App Store
4. ExxonMobil
With a total revenue of $197.5bn, ExxonMobil is also one of the biggest companies in USA. This one is the descendent Rockefeller’s (in)famous Standard Oil Company, it was created by the merger of Exxon and Mobil in 1999. While the headquarter is in Irving, Texas, the business is at a multinational level.
On a more contemporary note, it is worth mentioning the controversy surrounding ExxonMobil’s implication, or lack of, in climate change. The company gained a reputation of denying the existence of global warming, even lobbying for its denial. They also are skeptical of the fact that the phenomenon would be caused by the burning of fossil fuel. Also, they failed to properly address their famous Alaska oil spill. Nevertheless, they have the following statement on their website: The need for energy is universal. That's why ExxonMobil scientists and engineers are pioneering new research and pursuing new technologies to reduce emissions while creating more efficient fuels. We're committed to responsibly meeting the world's energy needs.
Most popular brands:
- Exxon
- Esso
- Mobil
5. McKesson
The final spot in this listing is secured by McKesson with its revenue of $196.5bn. And so we switch, yet again, to a new domain, that of healthcare. The main activities of the company include: the distribution of pharmaceuticals, providing medical supplies and health information technology. Also (now) based in Irving, Texas, McKesson was founded in New York. The story of its foundation is multilayered, the foundation was set by Charles M. Olcott back in 1828 (Charles M. Olcott), but in 1833 John McKesson joined (Olcott, McKesson & Co.). After Olcott’s death, a new partner joined – Daniel Robbins - and the company was renamed yet again (McKesson & Robbins). What followed next was one of the biggest scandals in the business world (McKesson & Robbins scandal), which lead to important changes in the American system. Even after the scandal has ended, it was not all smooth sailing ahead. Nevertheless, the company continued on, it adapted, evolved and has become one of the oldest companies in the US that has operated without interruption.
Conclusions
All in all, we have a colorful top 5 of the biggest companies in US, based on their foundation stories, domains of operation, strategies adapted… but perhaps the one thing they share is perseverance and the ability to adapt. But I do not believe that there is just one key ingredient that will get you guaranteed fame and success, there are many roads that can potentially take you there; the only way to know is to walk down one or more of them.
1. Wallmart
Unsurprisingly to most people, Wallmart is at the top of the list with $485.3bn in revenue. The history of the largest retail service in the world begins in 1950, when Sam Walton bought a store in Arkansas from Luther E. Harrison. But it is only in 1962 when the foundation stone for Wallmart was laid with the first discount store. This then quickly expanded to be present in each and every US state in only 12 years, after which followed Canada. But the success of Wallmart was based on a controversial idea that lower prices coupled with outstanding service would ultimately increase profit. But things did not stop there, the company kept on implementing innovations throughout the years. Also, it quickly became known as a client-focused business and won the loyalty (hearts) of many. The principles that set Wallmart apart from its competitors are just as valid for our modern society as they were half a century ago, to which if you add the history and legacy, its future (still) looks pretty bright. “Mr. Sam” as he is known to many, believed that a successful business can be achieved by simply following 10 steps. Sounds simple enough, doesn’t it?
Some impressive stats:
- 260 million customers
- over 11,000 stores
- in 28 countries
- internet-based service in 11 countries
2. Berkshire Hathaway
Not quite in a close second, but the next entry nonetheless, is Berkshire Hathaway with its revenue of $222.9bn. Basically, we are talking about a holding company that unites under its umbrella numerous other businesses. The headquarters is seated at Omaha, Nebraska. Here we can see a radically different strategy and business path than in the previous one. Warren Buffet, the chairman and CEO, rose to become the main shareholder of the company by the ‘60s and ran a strong campaign to branch out investments into other businesses. Regarding advice for stock investment, it is well known that Buffet abstains from any advice, however, if you are curious about what he has to say about saving money, you can read his letter here: https://www.berkshirehathaway.com/message.html.
Companies that are completely owned by Berkshire Hathaway:
- Geico
- Brooks
- Duracell
- Dairy Queen
- BNSF Railway
Companies that are partially owned by Berkshire Hathaway:
- American Airlines Group Inc. (9.8%)
- American Express (18.2%)
- Apple (5.4%)
- Bank of America Corp. (9.4%)
- The Coca-Cola Company (9.4%)
3. Apple
Next in, with a $217.5bn revenue is Apple. The multinational technology company entered history by becoming the first to hit the trillion-dollar market cap and continues to be one of the most popular and valuable companies. Based in Cupertino, California, the company is known for the design, development and selling of a variety of products and offering a wide range of services (see the list below). Experts tend to agree that what propelled Apple to its unparalleled success was its focus on consumer experience and satisfaction. Also, the controversy surrounding the brand and its owner might have had a say in this. I believe that the story of Apple with all of its struggles is a good example of perseverance and endurance, and it shows that it is certainly not easy to overcome hardships.
The services and products Apple provides can be broken down in three main categories: hardware products, software, online services. Now let’s look at the top stars of each category.
Some of Apple’s most popular hardware products:
- Mac personal computer
- iPhone
- Apple Watch
- iPad
- AirPods (wireless earbuds)
Some of its most popular software:
- iOS operating system
- Safari web browser
- iTunes media player
From the online services we can mention:
- Apple Store
- iTunes Store
- iOS App Store
4. ExxonMobil
With a total revenue of $197.5bn, ExxonMobil is also one of the biggest companies in USA. This one is the descendent Rockefeller’s (in)famous Standard Oil Company, it was created by the merger of Exxon and Mobil in 1999. While the headquarter is in Irving, Texas, the business is at a multinational level.
On a more contemporary note, it is worth mentioning the controversy surrounding ExxonMobil’s implication, or lack of, in climate change. The company gained a reputation of denying the existence of global warming, even lobbying for its denial. They also are skeptical of the fact that the phenomenon would be caused by the burning of fossil fuel. Also, they failed to properly address their famous Alaska oil spill. Nevertheless, they have the following statement on their website: The need for energy is universal. That's why ExxonMobil scientists and engineers are pioneering new research and pursuing new technologies to reduce emissions while creating more efficient fuels. We're committed to responsibly meeting the world's energy needs.
Most popular brands:
- Exxon
- Esso
- Mobil
5. McKesson
The final spot in this listing is secured by McKesson with its revenue of $196.5bn. And so we switch, yet again, to a new domain, that of healthcare. The main activities of the company include: the distribution of pharmaceuticals, providing medical supplies and health information technology. Also (now) based in Irving, Texas, McKesson was founded in New York. The story of its foundation is multilayered, the foundation was set by Charles M. Olcott back in 1828 (Charles M. Olcott), but in 1833 John McKesson joined (Olcott, McKesson & Co.). After Olcott’s death, a new partner joined – Daniel Robbins - and the company was renamed yet again (McKesson & Robbins). What followed next was one of the biggest scandals in the business world (McKesson & Robbins scandal), which lead to important changes in the American system. Even after the scandal has ended, it was not all smooth sailing ahead. Nevertheless, the company continued on, it adapted, evolved and has become one of the oldest companies in the US that has operated without interruption.
Conclusions
All in all, we have a colorful top 5 of the biggest companies in US, based on their foundation stories, domains of operation, strategies adapted… but perhaps the one thing they share is perseverance and the ability to adapt. But I do not believe that there is just one key ingredient that will get you guaranteed fame and success, there are many roads that can potentially take you there; the only way to know is to walk down one or more of them.
Author: Carol J. Robertson
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