snarlydwarf;192827 Wrote: 
> If your premise was correct, then once a business reaches "mass consumer
> marketing," it is doomed to fail from then on and destroy any
> acquisitions it makes.
> 
> Do you really believe that nonsense?  Are your retirement investments
> structured to follow that belief?  Ie, are you putting your money where
> your mouth is?

The rest of your reply stands up just fine, but this bit doesn't.  Sure
his comment was a wee bit strident and full of bad analogies and
generalizations, but I don't think he ever claimed that a company was
doomed to fail once it achieved mass-market appeal.

His premise was that when a large mass-market company whose business
processes are optimized for creating revenue buys a niche company whose
business processes are optimized for creating a good product, the niche
company's business processes are supplanted by those of the large
company.  The large company continues to make money (and survive)
because that's what it's good at.  The quality of the products suffers,
but is more than compensated for by improved marketing, business
connections, etc.

Not that this isn't just another unsupported generalization, but there
are certainly plenty of historical examples of companies (and even
national economies) who survive quite a long time while producing
nothing but crap.  I tend to blame noncompetitive markets, monopolies,
protectionism and racketeering for these examples, while he seems to
blame this mass market appeal thingie.  It's all theoretical at some
level.  I doubt any theory has enough predictive value to tell us what
the Logitech purchase will or will not accomplish.


-- 
CatBus
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