Ways of market endorsement

Every time you buy something, you endorse the way the company does its business.

When we buy a product or service from a particular company, we are promoting the company, its policies, its business model, its work culture - everything. As long as a company is doing good, (by good I mean achieving its target sales and revenue) it wont feel the need to drastically change its model. Ultimately, its the signals from the market that the company responds to.

Of course its products will follow its own life cycle, question marks will turn into stars, if proper sales push is effected. The cash cows will remain so until competition forces pushes it to the dogs status.

As long as there is high growth in a particular segment and the company is having a high market share, the company will never change its policies. Let's say, if the company is heavy on environment pollution, but its products do not find any difficulty in the market, it wont bother much about self regulating the pollution. But once customers start drifting away from the company, then the company will need to change its stance. It will try to bring in regulation and more efficiency, so that its products can regain lost ground.

Likewise,let's say a chip manufacturer brings in faster chips but with poor power dissipation. That is, the comp would get heated up easily.If people are willing to live with the higher heat, the company will continue trying to produce faster chips without caring much about the heat dissipation systems. But once the customers find the heat too annoying or the increased speed not worth bearing with the heat or an alternative product that generates lesser heat, the company will feel the impact (Or if their market research people are savvy enough, and see it coming) and they will devote more effort towards reducing the heat.

Markets are the deciding factor for all business decisions.As long as it keeps the markets happy , the company is doing good.