Once a company hits a plateau in its market share, the pressure begins to mount.
Investors want more of a return, shareholders want the stock price to go up. Managers pay attention to the metrics they’re held to, and the squeeze begins.
At first, the squeeze focuses on efficiency. Cut obvious costs without diminishing customer delight or the conditions that the employees work under.
That doesn’t pay off forever, particularly in competitive markets.
At this point, there are two options:
The first is to reengage with the market. Innovate. Create opportunities for customers to find more opportunities and value. Use the resources you have to make something better.
The other, which is far more common, is to squeeze people–imagining that they might not notice, and then, with full knowledge that they do, but betting that they don’t have much of a choice.
Diminish the quality of life for employees. Demand more, offer less. Increase stress and forget what the original focus of the organization might have been.
Raise prices but lower quality and portion size and service at the same time.
Fedex decided that answering the phone on the first ring, happily honoring their guarantee and bringing extraordinary service to customers wasn’t as important as increasing their bottom line. Phone trees, unattended email boxes and plenty of fine print all exist to squeeze a few more dollars out of their existing sales.
JP Morgan Chase actively chooses to maximize short-term profit, betting that customers are too entrenched to switch. They’ll invest in coal, amplify credit card debt and outsource whatever they can to increase their margins.
If you use either of these companies, or any of their peers, can you honestly say that they care more and deliver more value than they used to?
Cory Doctorow describes the monopolistic dead ends built into most corporate financing schemes. Enshittification isn’t the decay that comes from neglect. It’s the active squeeze, trading the path of better for the short-term goal of making a few more pennies.
When an organization races to the top, they’re very clear about what they’re doing. They’ll engage their team and the market in a mutual dance toward possibility and improvement.
But when an organization is focused on the squeeze, they know precisely what they’re doing, but will obfuscate and deny instead of admitting it.
That should tell you something.
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