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Pearson's experiences reflect those of many who try to stay above the pedestrian fray of the money chasers. I am a Capitalist, just not with all caps. I was there at the genesis of the mountain bike rage and watched it become infected by the hoardes of Taiwanese dreck.
I believe Peason is simply providing a diagram of how nearly all industries evolve beyond the passion and start dwelling in the stagnant pond of advertising dollars and simply moving more product.
Star, cow, dog. The progression of money driven enterprises. Begin with something bright and shiny, maybe even innovative and exciting; milk it for all it's worth, beyond when it has actual cachet; and then peddle a never ending series of upgrades, repackaging and adspeak long after it has been surpassed by the competition.