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RCA had a great business model of creating what the next big thing would be, inventing it, holding the patents and reaping the rewards. Color TV is a great example of a longterm investment that paid off big for RCA in the end. Trouble was, RCA quit guessing right on what the next thing would be. They kicked VCR's to the curb. If they had invented VHS they would have been as dominate in the 80s and 90s as they had been in the 60s and 70s. CED was a massive left turn into the ditch, not only for what it cost the company in R&D money but for what it cost in lost revenue for not coming through with what America wanted. They could have also dominated with flatscreens, small sat dishes, home computers. The RCA of old didn't have to sell more than the competition, they just had to have the competition selling RCA designed products. Once they gave up that lead to the Japanese, they were just another manufacturer, subject to competing in a crowded global market. It was only a matter of time before building a color TV in Indiana would be a losing game.
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Bryan
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