I was not aware that my last two companies have secretly been Intel because every one of these factors applied to them.
It’s really another aspect of the innovator’s dilemma - interesting $-wise and margin-wise is so limited that they end up never doing anything interesting.
It is a problem really specific to high margin companies.
You actually don’t see this behavior at low margin businesses because the spectrum of things that can be done which aren’t immediately labeled a margin drag is a lot wider.
The company I work for now put all the up front effort into a new product line which would lilekk pk y have easily gotten to a billion or two a year within 3y with the right customer wins, but out normal margin is very high and the new line of business would have been very profitable objectively but would have been a margin drag. Every dollar would have lowered the gross and net margin.
It’s really another aspect of the innovator’s dilemma - interesting $-wise and margin-wise is so limited that they end up never doing anything interesting.
It is a problem really specific to high margin companies.
You actually don’t see this behavior at low margin businesses because the spectrum of things that can be done which aren’t immediately labeled a margin drag is a lot wider.
The company I work for now put all the up front effort into a new product line which would lilekk pk y have easily gotten to a billion or two a year within 3y with the right customer wins, but out normal margin is very high and the new line of business would have been very profitable objectively but would have been a margin drag. Every dollar would have lowered the gross and net margin.