Comment This is how it goes (Score 1) 177
Someone makes something great.
They are first-to-market.
Big Corp. buys them out, desiring only their IP.
All of the engineers who actually made the product (& company) valuable are fired.
Big Corp. squanders that first-to-market advantage to gain short-term profits.
Customers who've bought prior-generation products versions beg to have important improvements made to the line of tools.
Big Corp. ignores customer pleas while simply juicing the IP they bought, for every nickel they can get.
Big Corp. refuses to implement any improvements, new features, etc. because they can't. They fired the innovators and implementers to save on salary costs.
Yep, they essentially just find a ripe piece of fruit, and then juice it.
This is what small businesses in the US have been reduced to: fruit trees. Small companies take the risk of being inventive. When something proves to be valuable, it is bought-out, everyone fired, and the market for the product stagnates. I have been on both ends of this stick. I pleaded with a certain company, who sold a $650k tool, to make two minor engineering improvements that would essentially double the market for the device (it would be a tool for two markets, not just the one). These changes would have cost about $500 per tool. The end result? Well, since they had bought-out the small company that originally designed it, fired all the engineers and control-system programmers, the Big Corp. was literally incapable of implementing any improvements (or even bug-fixes) to the system. Recall that they fired all the engineers and programmers, and simply bought the IP and the market the small biz. had cornered.
To cap off this specific example — Another company that truly does innovate has, well, devised a tool that does "the thing" better, and costs 1/3 of what the Big Corp. is charging. They listened when I detailed to them engineering specs. for what customers needed in a next-gen tool. Well, the Big Corp. is about done juicing their piece of fruit, and this other company will soon take over the market . The Big Corp. made their millions, so they move on. I just hope that this "other company" isn't bought-out.
The sad result of this cycle is that American innovation in products is stagnated by Big Corps. that choose to simply juice innovative products, rather than actually improve them to grow the market. In the end, the customer & consumer lose. Oh, and the US as a whole.