Who Optimizes SG&A Costs Better? Shopify Inc. or Telefonaktiebolaget LM Ericsson (publ)

Optimizing SG&A: A Tale of Two Giants

In the ever-evolving landscape of global commerce, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Shopify Inc., a leading e-commerce platform, and Telefonaktiebolaget LM Ericsson, a telecommunications titan, offer a fascinating study in contrasts. From 2014 to 2023, Shopify's SG&A expenses surged by over 2,800%, reflecting its rapid growth and expansion strategy. In contrast, Ericsson's SG&A costs remained relatively stable, fluctuating within a 30% range, indicative of its mature market position and operational efficiency.

Shopify's peak in 2022, with expenses reaching nearly 1.94 billion, underscores its aggressive market capture efforts. Meanwhile, Ericsson's consistent expenditure, peaking at 37.68 billion in 2023, highlights its focus on steady, sustainable operations. This comparison not only showcases different business strategies but also emphasizes the importance of cost management in achieving long-term success.