why certain organisations succeed

I have been working for asset management companies for the last 7 years and I saw many small companies becoming big while others languishing. why is that the case?

Do AMCs know what business they are in. Are they in the business of managing people's savings? Are they in the business of channel management? Are they in the business of manufacturing investment products? etc etc.

On top of this, there is a confusion on who the customer is? is it the investor who cuts a cheque, allows the investment manager to charge a fee or is it the distributor who gets them the cheque?

Looking from outside, it is very clear that the asset management companies are in the business of manufacturing investment products, sold through a distributor, to the end investor. So, they manufacture a investment product wherein an individual can put his savings.

i think many companies dont understand this. they believe that an inferior investment product can be sold through a good distribution product. i frankly dont think so. i am yet to see an AMC making big, which has not delivered on performance. The reverse may not hold where a good performance means large business. so, in my view, good performance is a necessary condition but not sufficient.

coming to the second question, who is the customer. i firmly believe it is the end investor who is the customer as he cuts the cheque, pays the fee and takes risk on savings that the fund manager will deliver. Distributor is just an enabler to get through to the end customer.