A company had a complete monopoly of the market. The COO and the finance department were very aligned with what the shareholders wanted, to the extent that they had stopped focusing on what had brought them their success in the first place—their customers. 

When the company had started out, they were fully focused on meeting their customers’ needs. However, as they grew, the COO became more and more eager to please the shareholders, so when the shareholders wanted to increase the profits by raising the prices, the COO fell into line without challenging whether or not this was going to be in the customers’ best interests. At first, the marketing department objected, as they were aware that there would be an increase in customer complaints. However, when the finance department pushed back, and it became apparent that they had the support of the board, nobody in marketing was prepared to rock the boat and take accountability for making an unpopular decision. Because the company had a monopoly in the marketplace, the marketing department used their customers’ reliance on the company as a way to focus on the desires of the shareholders, rather than the needs of their customers. At first, their customers had no option but to accept the price increase. However, over time, new companies began to spring up around them, and these companies kept their prices low in order to attract customers. The big company’s customers were quick to switch to these new companies, which offered exactly the same solutions to their problems at a fraction of the cost. 

In the end, the big company was swallowed up by the market. They had been so focused on pleasing the board that they forgot what it is that keeps you in business—you need customers who want to keep coming back to you.