The Demise of Web 2.0: Ignoring Product-Market Fit
Anyone working on a startup – or an investor deck – knows that one of most important criteria to investors (besides what your company will do to ensure that they’ll see an exit at some point in their lifetime, or at all) is product-market fit, which is especially important at this juncture, given the downturn in the market. Although we will remind you once again that some of the biggest companies emerged during the worst of times.
That said, Big Tech is no more immune to the vagaries of the market and the importance of product-market fit than is anyone else, but one thing that they do have- so far – is deep pockets.
Does that really help? At Alphabet, “Revenue growth slowed to 6% from 41% a year earlier as the company contends with a continued downdraft in online ad spending,” said CNBC. It had missed analysts’ expectations. “CEO Sundar Pichai said in the statement that the company is “sharpening our focus on a clear set of product and business priorities,” while Ruth Porat, the finance chief, said “we’re working to realign resources to fuel our highest growth priorities.” So, does that mean so much for moonshots et al and, instead, sharpening the focus on what people do want, rather than what the company feels that they might or should want?
