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Why Games Workshop is not a good business
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<blockquote data-quote="Cor Azer" data-source="post: 5870050" data-attributes="member: 870"><p>OP is using two different, but suspicious similar, definitions of 'good'</p><p></p><p>GW makes profit (a substantisl smount apparently). By definition of 'good at business' they are thus 'good' - they are making money.</p><p></p><p>But they don't share his risk assessments, and choose not to diversify too much. They stick with miniatures, because that's what they know. They know their suppliers. They know their distribution chains. They know their employees. They know what works for them and have no real reason to try to go outside that box. It doesn't make them 'not good'; it just makes them 'risk-averse'.</p><p></p><p>A business needs only take one risk in its lifetime - start. Beyond that, it's hard work. If its employees work hard, company makes money. Taking risks doesn't make a company 'good' (or 'bad').</p><p></p><p>Loyalty doesn't really exist in a product company. They produce product, customer buys it (or not). Relationship ends.</p><p></p><p>It's different in a service-based company, but GW doesn't provide a service, thus, no implied loyalty. Sure, they'd like you to keep purchasing their stuff, but just as you have no obligation to keep buying, they have no obligation to keep providing what you want.</p><p></p><p>Obviously though, someone wants what they're offering, because they still make money.</p></blockquote><p></p>
[QUOTE="Cor Azer, post: 5870050, member: 870"] OP is using two different, but suspicious similar, definitions of 'good' GW makes profit (a substantisl smount apparently). By definition of 'good at business' they are thus 'good' - they are making money. But they don't share his risk assessments, and choose not to diversify too much. They stick with miniatures, because that's what they know. They know their suppliers. They know their distribution chains. They know their employees. They know what works for them and have no real reason to try to go outside that box. It doesn't make them 'not good'; it just makes them 'risk-averse'. A business needs only take one risk in its lifetime - start. Beyond that, it's hard work. If its employees work hard, company makes money. Taking risks doesn't make a company 'good' (or 'bad'). Loyalty doesn't really exist in a product company. They produce product, customer buys it (or not). Relationship ends. It's different in a service-based company, but GW doesn't provide a service, thus, no implied loyalty. Sure, they'd like you to keep purchasing their stuff, but just as you have no obligation to keep buying, they have no obligation to keep providing what you want. Obviously though, someone wants what they're offering, because they still make money. [/QUOTE]
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