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0 pointsserial_dev3y ago0 comments

When I was reading the comment, I thought the same: why don't companies just accept that they have one good project, focus on it 100%, stay good at it, and when the market dies, the company could die with it. There is no shame in milking one product for 20 years, providing a living to hundreds/thousands, then just scale back to maintenance and eventually close things down.

It doesn't really happen in practice, because no "visionary CEO" will say "we couldn't come up with a better idea than what we are doing now, so let's just call it a day in terms of exploring other ideas, and focus on this one product".

My current company is a retail company with both lots of physical locations and web shop/mobile app. We always try to come up with features that users can use in the physical stores, and those features get practically zero traction. Nobody is willing to say that the people who go to the stores, in a big percentage, won't use our apps, and the people who use the apps/web shop don't care about the physical stores. Every product person wants to combine these two, and I don't understand why.

(I guess, that's why I'm not in charge of business decisions :))

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nradov3y ago

That is exactly the business model for some private equity firms (corporate raiders). They identify undervalued companies with strong revenue and significant assets where incompetent management is wasting resources and buy the company. Then they stop investing in growth, cut expenses to the bone, borrow against the assets, issue huge dividends to shareholders, and allow the company to gradually die. There's nothing really wrong with this approach and it probably helps increase overall economic growth through better capital allocation. But it can be a rough ride for employees caught in the process.

908B64B1973y ago

> But it can be a rough ride for employees caught in the process.

Or an opportunity. They should see the private equity firms coming in as a signal it's time to jump ship and not liquidate their stocks (actually, renegotiate your ESPP while you look out for the next thing!).

scotty793y ago

> why don't companies just accept that they have one good project, focus on it 100%, stay good at it, and when the market dies, the company could die with it.

Because corporations are organisations (that develop some bureaucracy) and the main existential purpose of every bureaucratic organisation is to survive and grow. No corporation will just voluntarily die I think. First it will be sold, reorganized, reimagined, reinvented, downscaled, pivoted and all that good stuff.

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