> Any company not spending 99% of its energies on optimization does not operate in a competitive environment
That’s how a company stagnates and eventually gets replaced. Yes operational efficiency and optimization is important, but you only do that if you have a big moat and not much growth ahead of you. You need to spend at least 30% on growth and innovation so you can stay relevant. Higher if you are the one trying to replace the 99% ones.
A "mature and competitive field" is going to already have all low-hanging fruit taken and implemented. The moat is operational efficiency. The barrier to entry is the high costs of investment and general lack of access to know-how.
Not every industry is like software/tech. And the tech industry is already moving towards a "mature and competitive field" model. Otherwise why is Google and Meta cutting all their unnecessary spending and touting efficiency over growth? (besides AI tech, I suppose) Why all the layoffs?
That’s how a company stagnates and eventually gets replaced. Yes operational efficiency and optimization is important, but you only do that if you have a big moat and not much growth ahead of you. You need to spend at least 30% on growth and innovation so you can stay relevant. Higher if you are the one trying to replace the 99% ones.