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> why don't companies just accept that they have one good project, focus on it 100%, stay good at it, and when the market dies, the company could die with it.

Because corporations are organisations (that develop some bureaucracy) and the main existential purpose of every bureaucratic organisation is to survive and grow. No corporation will just voluntarily die I think. First it will be sold, reorganized, reimagined, reinvented, downscaled, pivoted and all that good stuff.



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