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I swear that there is a resource curse for businesses with a singular "successful" product line. In order to expand the business and not have people sucked int
by lumost 6y ago
I swear that there is a resource curse for businesses with a singular "successful" product line. In order to expand the business and not have people sucked into the "successful" part, the teams need to be split. Once the teams are split the "successful" team wonders why the "new" team sucks.
In the case that the successful business is Ads/Search... it's tough to compete. I'd imagine even within Ads/Search there is a resource curse between AdX/AdWords/Youtube and every other ad business.
- liaukovv 6y agoSounds to me like what they shoukd be doing is instead of trying to "reinvest" profits from ads instead pay them out to shareholders so they can more efficiently redistibute it to multiple smaller businesses
- KirillPanov 6y agoBut that would shrink the empire. The kind of people drawn to "chief" positions are not interested in shrinking their empires.
- tehlike 6y agoThey are doing share buybacks which is usually deemed more tax efficient.
- pclmulqdq 6y agoThat is exactly what they should do, but the fact that a majority of voting shares are held by 2 managers makes the company have a huge conflict of interest that favors growing more and more rather than pulling cash out.
- csours 6y agoAre you familiar with the Innovator's Dilemma? Because it sounds like you're describing it. https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma And yes, splitting is part of a solution. I think discipline is another part.