Business Rock, Paper, Scissors
This article is a part of a series based on our Annual Strategic Report, The Future Is Gig. Download the report here.
In the metaphorical business landscape described by Evernote founder Phil Libin, businesses are likened to the elements of the game rock, paper, scissors. Start-ups are represented as scissors, being agile and sharp, capable of cutting through the inefficiencies of larger, slower companies. Larger corporations are represented as paper, often bureaucratic and slow to adapt to changes. Mid-sized companies are represented as rocks, hard and bulky, capable of crushing smaller start-ups.
In the world of AI-assisted gig work, independent freelancers and contractors are seen as the ultimate scissors, being highly adaptable and capable of cutting through bureaucratic red tape.
In this metaphor, each type of business has its strengths and weaknesses, creating a balanced cycle of competition. Start-ups, or “scissors”, are characterized by their sharp focus and ability to carve out a niche in the market dominated by larger companies.
As these start-ups grow and become successful, they transition into “rock” companies, medium-sized organizations with more brands and less focus. These “rock” companies thrive by overpowering the smaller “scissors” companies. As these “rock” companies continue to grow, they can become “paper” companies, large corporations that are often slow to respond to changes in the market.
This metaphor provides a useful framework for understanding the dynamics of the business landscape. It highlights the importance of agility and adaptability in start-ups, the strength and momentum of mid-sized companies, and the potential vulnerabilities of large corporations. It also underscores the role of independent freelancers and contractors in this ecosystem, who can bring a high degree of flexibility and innovation to their work.
In terms of statistics, the global paper industry, representing large corporations in this metaphor, is a billion-dollar industry with companies like International Paper leading with a revenue of more than 19 billion U.S. dollars. Start-ups, represented as scissors, are burgeoning across various sectors, with companies like Scissors & Scotch demonstrating significant growth. Mid-sized companies, represented as rocks, also play a significant role in the economy, with companies like Evernote boasting over 100 million paying users.
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