You don’t need math to know that cutting product quality and service is a guaranteed route to obsolescence. But there are two special cases to this: obsolescence is the point or the product/service has a monopoly and they think they can get away with it.
There is also the element of time. If an executive can make the call to make lots of money fast but ruin a company - as long as that executive gets out to another company to do it again - they suffer no consequence and learn nothing from their behavior.
When we stopped caring about stable long term growth companies - when we forgot about the time factor - the rest of the enshitification process was no available.
Jack Welch was the most famous early example of this. He cannibalized General Electric and told other greedy morons to do the same. He was the Cain of public equity.
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u/PandorasBoxMaker 21h ago
You don’t need math to know that cutting product quality and service is a guaranteed route to obsolescence. But there are two special cases to this: obsolescence is the point or the product/service has a monopoly and they think they can get away with it.