How Stockholder Pressure Drives Tech Companies Away from Customer Focus
By
lr0
Crisp on the outside, thoughtful on the inside. A keeper.
Summary
Large publicly traded tech companies have shifted their primary focus from serving customers to prioritizing stock prices and shareholder value. Decision-makers' compensation is often tied to stock performance, incentivizing them to prioritize stockholders over actual product users. This dynamic means the "product" being sold is increasingly the hype and stock performance rather than the actual goods or services offered.
Key quotes
· 4 pulledLarge publicly traded tech companies seem to no longer consider their customers – that is, people and organizations who actually buy their products or pay for access to their services – their core focus.
The focus has instead turned towards the stock price.
Their real clients, the entities they really care about, are the stockholders.
people making decisions tend to own stock options or have bonuses tied to stock performance of the companies they run.
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