Wednesday, November 23, 2011
In the old days, the large companies played the strategic positioning card of sitting on the hands and waited to acquire their young competitors with their mountains of cash reserves. They were usually focused on milking their cash cows while strengthening their market position through political-economic-social connections.
In summary, some of these larger companies became fatter and complacent by centering their attention on efficiency and quality. When the timing is right, they acquired their innovative competitors with an optimal-exploitative approach.
In the era of the information economy, some of the younger companies are "aggressively" innovating. Some of these CEO's do not even cared about being absorbed by larger companies. They wanted to build something that would last a great deal of time.
These fat dinosaurs will disappear at some point of time. No dynasty lasts forever.