What does no scalability mean?
No scalability means an organization or a product's system or function, does not have the capability to perform well.
Definition of scalability
According to Investopedia, scalability is "a characteristic of an organization, system, model, or function that describes its capability to cope and perform well under an increased or expanding workload or scope.
When an organization or product is able to scale well, it would be able to maintain or increase its level of performance or efficiency.
In summary, Investopedia describes scalability in the following:
- scalability describes a system's capability to adapt easily to increased workload or market demands;
- a scalable firm is able to benefit from economies of scale, and can quickly ramp up production; and
- scalability has become increasingly relevant in recent years as technology has made it easier to acquire more customers and expand markets globally.
Return to Glossary of business failures or read "Poor Business Model".
Create a free account for our affordable startup intelligence empowering founders.
Last edited on 6 January 2022.