3 ms·
> This is more the classic “brand X is now bloated and failing because it forgot its roots when going mainstream” argument. Nothing to do with capitalism I'm n
by dls2016 7y ago
> This is more the classic “brand X is now bloated and failing because it forgot its roots when going mainstream” argument. Nothing to do with capitalism
I'm not sure I'd say nothing to do with capitalism. Underneath many of these "bloated" brands you find the same pattern. A niche or well-respected brand purchased by a private equity firm. They proceed to hollow out the brand (move production, cut warranties and customer support, etc.) while simultaneously playing financial tricks to extract money (saddle the company with debt/management fees).
This pattern may or may not be one unique to capitalism, but it's surely one which occurs frequently in the US implementation.