Anti-Capitalist Sentiment (with some morality)

[CoccoBill]

OK, I'll just answer to the bits with even a modicum of relevance.

It's totally common and natural for a company to invest money in measures that attract more revenue, even in times of prosperity.

For sure, but not by spending as much money as possible.

Because quality, brand, reputation, and service are all things that matter.

Sounds like you're cutting too much costs, in other words you've exhausted option 2.

Cutting costs doesn't guarantee against a loss of sales. For every action, there's a reaction. What's your point?

Of course it doesn't, but it's in most cases cheaper to implement than doing R&D.

So explain how a state-run institution would do it better?

Let's not get ahead of ourselves, we're just talking incentives.

Why do you equate a minimization of expenditure with a degradation in quality?

I don't, it's you who said that: "3) Cut Costs, i.e. degrade the quality of the product." Either way, I'm sure you can agree that at some point the degradation of quality is inevitable.

In what universe is the goal of businesses to avoid any and all risks? Do you fold everything but the nuts in poker? It's perfectly reasonable for businesses to assume risk if the potential rewards justify it.

Probably in the same universe where someone claimed that. Why do you think the potential rewards always justify it?

Look at the list again. By adding price increases to the list, you have options to generate capital that finance growth, expansion, and improvements. And then way down there at the BOTTOM of the list, is cost-cutting and quality-lowering.

Yes, and I agreed raising the price is the most +EV option if that is viable in your market situation. If it isn't, most likely the next best option is to cut costs, since that is also quick and easy, entails no additional costs like research, testing, development, and is fairly guaranteed to work, since you don't need to generate more business. Marketing is also a better option than r&d, since it's far cheaper and quicker. Then again it's not guaranteed to work.