2. A cash cow that provides relatively easy funding (only Ad-funded models, toll boxes or a huge subscription service with near-zero marginal costs)
Now if these kind of companies exist (even though it’s pretty rare) why isn’t there companies ambitious enough to fund or work on world-changing projects even if it falls from their main line of business? I can only think of one potential company: Stripe.
What do you think?
Also this seems to happen more with American businesses, which often specialize. Asian businesses tend to do everything, e.g. noodles, dried fish, electronic devices, data, wool, plastic refining, microwaves, logistics, real estate, education, lending, etc.
FAANG has proven that the specialization model works brilliantly, and so many corporations mimic the cash cow approach.
Another model is to have a holding company invest in multiple other forms of specialized businesses. Google does search and data, and doesn't innovate as much. But Alphabet can do all the experiments it wants, fueled with Google income. People look at Google and wonder why it isn't more innovative, but that's not the role Google tries to take.
They are actually rare in that they have the ability to churn out new product categories in a broader ecosystem of related products.
Power controlled by a guy or small group can work out incredibly well or disastrously. Zuckerberg’s laser focus and tenacity made Facebook a giant and his quixotic pursuit of VR thus far is a disaster. Elon is the the poster child for what happens when there’s no corporate bureaucracy to prevent bad decisions.