KazeoHin
[H]F Junkie
- Joined
- Sep 7, 2011
- Messages
- 8,890
pledging brand loyalty is absurd. Brands leapfrog eachother in quality all the time.
Lets say you have a fantastic company that has quality products and has huge marketshare in your sector.
What do shareholders want? More.
but you already have saturation in your market, and your products are flyling off the shelves, there's nowhere to go. you're at the top.
What do shareholders want? More.
So you start cutting costs. be it QC, product support, admin, who knows. just cut costs so you can widen your margin and give the shareholders more.
What do shareholders want? More.
pretty soon your products are coasting on brand recognition alone. profit margins are high but quality has taken a hit.
now your competitors are one-upping your quality and reviewing higher. word spreads around and now you aren't number one anymore.
Repeat from the top, only now its the competitor's story.
Also each and every publicly traded company would gladly slit your throat with no regrets if it meant a guaranteed 5% increase in their growth. Yes, even {insert your favorite brand here}.
Lets say you have a fantastic company that has quality products and has huge marketshare in your sector.
What do shareholders want? More.
but you already have saturation in your market, and your products are flyling off the shelves, there's nowhere to go. you're at the top.
What do shareholders want? More.
So you start cutting costs. be it QC, product support, admin, who knows. just cut costs so you can widen your margin and give the shareholders more.
What do shareholders want? More.
pretty soon your products are coasting on brand recognition alone. profit margins are high but quality has taken a hit.
now your competitors are one-upping your quality and reviewing higher. word spreads around and now you aren't number one anymore.
Repeat from the top, only now its the competitor's story.
Also each and every publicly traded company would gladly slit your throat with no regrets if it meant a guaranteed 5% increase in their growth. Yes, even {insert your favorite brand here}.