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> They're surfing a wave of ... cash

That doesn't help. It is lagging indicator reflecting what you did in the past, not what you do today or will do tomorrow.

For example read the Innovator's Dilemma where the pattern is repeated. Companies would listen closely to their customers, getting improving cash, rinse and repeat. Everything looks great right up until it falls off a cliff because attention moves to something else that looked irrelevant, but was actually disruptive.

A good example is RIM. They kept sailing on their prior work and even a year ago operating margins were 20%. Now they are minus 25%. Historically no mobile company has ever got out the place RIM is now in. But their wave of cash looked good and was enough to fool them into being complacent.

http://www.asymco.com/2012/07/02/rims-tailspin/



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