<story><title>Intel financialized and lost leadership in semiconductor fabrication (2021)</title><url>https://www.ineteconomics.org/perspectives/blog/how-intel-financialized-and-lost-leadership-in-semiconductor-fabrication</url></story><parent_chain><item><author>p1necone</author><text>Part of the cause is that the people doing this still benefited - if you can cut a bunch of costs and bump profits for the next few years it doesn&amp;#x27;t matter to you as an executive whether those changes ultimately lead to significantly worse outcomes for the company in the longer term.&lt;p&gt;Brand loyalty takes a while to fade, there seems to be a cycle with a large number of successful companies that goes&lt;p&gt;work honestly to build a good product&lt;p&gt;-&amp;gt; generate brand loyalty&lt;p&gt;-&amp;gt; people with integrity get replaced by people who would have had no chance of building that successful product&amp;#x2F;company in the first place&lt;p&gt;-&amp;gt; cut as many corners as possible while riding the brand loyalty to more short term profits&lt;p&gt;-&amp;gt; eventually, on the scale of decades sometimes (because people take a &amp;#x2F;long&amp;#x2F; time to realize that &amp;#x27;well known brand&amp;#x27; !== quality), get out-competed by a small company building the same thing as you with integrity&lt;p&gt;-&amp;gt; return to step one with new company.</text></item><item><author>bin_bash</author><text>It seems both Intel and Boeing had similar paths. They were engineering-first companies that were transformed into profit seeking and while they made a lot of money initially, eventually it failed for both of them.&lt;p&gt;My takeaway is that working hard to build quality products is more likely to be profitable than working hard to make money.</text></item></parent_chain><comment><author>cheriot</author><text>This is why I think we need to figure out executive compensation. Boards just rubber stamp whatever the CEO wants.&lt;p&gt;Tie their compensation to real goals and require them to hold for the next 10 years.</text></comment>
<story><title>Intel financialized and lost leadership in semiconductor fabrication (2021)</title><url>https://www.ineteconomics.org/perspectives/blog/how-intel-financialized-and-lost-leadership-in-semiconductor-fabrication</url></story><parent_chain><item><author>p1necone</author><text>Part of the cause is that the people doing this still benefited - if you can cut a bunch of costs and bump profits for the next few years it doesn&amp;#x27;t matter to you as an executive whether those changes ultimately lead to significantly worse outcomes for the company in the longer term.&lt;p&gt;Brand loyalty takes a while to fade, there seems to be a cycle with a large number of successful companies that goes&lt;p&gt;work honestly to build a good product&lt;p&gt;-&amp;gt; generate brand loyalty&lt;p&gt;-&amp;gt; people with integrity get replaced by people who would have had no chance of building that successful product&amp;#x2F;company in the first place&lt;p&gt;-&amp;gt; cut as many corners as possible while riding the brand loyalty to more short term profits&lt;p&gt;-&amp;gt; eventually, on the scale of decades sometimes (because people take a &amp;#x2F;long&amp;#x2F; time to realize that &amp;#x27;well known brand&amp;#x27; !== quality), get out-competed by a small company building the same thing as you with integrity&lt;p&gt;-&amp;gt; return to step one with new company.</text></item><item><author>bin_bash</author><text>It seems both Intel and Boeing had similar paths. They were engineering-first companies that were transformed into profit seeking and while they made a lot of money initially, eventually it failed for both of them.&lt;p&gt;My takeaway is that working hard to build quality products is more likely to be profitable than working hard to make money.</text></item></parent_chain><comment><author>Pxtl</author><text>How many folks out there got burned by HP products when they were hip-deep in that step 3 step 4 zone of &amp;quot;strip-mine your own brand reputation selling cheap crap&amp;quot;?</text></comment>