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Yeah, I'm referring to a period in the 90s when they were better known as Crappy Tire, and the stores hadn't been changed in decades. A new president came on board and they decided to spend big on new buildings and revamping the space. Many of the dealers didn't buy into it because they were making money regardless (sort of like the Ballard era Leafs). They were bought out and the stores rebuilt anew. Store sales jumped and the image was dramatically improved.
Like Sears, CT had a great private label tool line that seems to have vanished only to be replaced by junk.
An Italian bicycle frame maker was famous for the quality of his bikes and in high demand. During the late 80s he expanded to take advantage of his success only to see quality suffer. After a few years he scaled back down to a level where he could still personally oversee the production and regain the level of quality that had built his reputation. As you pointed out boreality, expansion is not always the best avenue for a business person.
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Homelite and McCullough also good examples we are familiar with. When I started in late 60's they still both made a good product. Then they both went to giant hardware store production and quality diminished tremendously.
As for tree companies...you have the "chief cook and bottle washer" service (like mine) then the "chief" either gets overloaded from being very good at what he does or he gets too old or out of shape to produce...
...and quality suffers by NOT expanding (and "chief" not taking a dedicated management position).
But ofcourse chief has become accustomed to a life style of a decent cost of living so he may have to expand beyond his capabilities as an inexperienced large company manager to pay the bills...if he just expands a little he makes less than he did as a tiny entity.