The Danger of Overexpanding: Why Some Companies Fail

Many companies fail not because they run out of money, but because they try to do too much. The allure of growth and diversification often leads companies to overexpand, neglecting their core offering and spreading their resources too thin. This tendency to take on too many initiatives can be driven by factors such as the desire to prove ubiquity in the market or the fear of missing out on new opportunities. However, it is crucial for companies to focus on their strengths, build a profitable sustainable market, and prioritize being world-class at one thing before considering expansion. The example of Apple's Steve Jobs, who slashed products and refocused on personal computers, illustrates the importance of staying laser-focused and identifying the criteria for expansion that aligns with a company's core competency and customer demand.