I have my own theory about why decline happens at companies like IBM or Microsoft. The company does a great job, innovates and becomes a monopoly or close to it in some field, and then the quality of the product becomes less important.

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In the book "Steve Jobs" by Walter Isaacson, the author presents a theory regarding the decline of major corporations like IBM and Microsoft. He suggests that these companies initially excel by innovating and achieving a dominant market position, often resembling a monopoly. However, this success can lead to a shift in focus where the emphasis on product quality diminishes over time.

This deterioration in quality occurs because established companies often become complacent, relying on their past successes rather than continuing to push for excellence. Consequently, this could pave the way for new competitors who prioritize innovation and quality, ultimately challenging or displacing the once-dominant firms.

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March 01, 2025

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