Wednesday, August 22, 2007

Big Companies Always Self Destruct

Once there was a company called Wiget Incorported. And it made the finest wigits in the land. And then , a manager came along.
And the manager said "how can we improve our company's bottom line ? "
And so he decided to charge just a tiny little bit more for the Wigets they made, and make the Wigets just a little bit cheaper.
And then , another manager came along a year later , and wanted to show he was better than the first manager , and so he made the wigets , again , a little bit higher in price , and ever so slightly more cheaper in materials and construction.
And then another manager ... and another manager , and another ...
Until the Wigets were the cheapest, most minimally useable but very pricy wigets there could be.

And when asked about this, the managers said "You see, you have to understand the way the business work..."

And then , across down , a new engineer had a new idea, and made something called Double Wigets, which were vastly superior to regular wigets. And so the Wiget company promptly decided to make their wigets as good as the double wigets. But it was too late, and so the Wiget company went bankrupt.

And Double Wigets became a very powerful company.
And it needed managers.
And then a manager decided to raise the price , just a little bit , and lower the quality ... just a little bit ....

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