Monday, March 12, 2018
We won't even get into the return of vinyl...
I'm assuming that everyone has heard the buggy whip analogy, one of the most shopworn pieces of conventional business wisdom. One of the underlying assumptions, sometimes made explicit depending on who's doing the telling, is that you are always better off abandoning even the best company in a declining industry in order to make the move to a field that's new and growing.
It's important to note that even in declining industries you can find companies that continue to turn a profit for a long time while even in industries that do proved to be the wave of the future, lots of individual companies don't last that long.
Or, put another way, you can still buy a buggy whip from the Westfield Whip Manufacturing Company, but they stopped making Lamberts a long time ago.
Posted by Mark at 9:00 AM