Earlier quoted context omitted.
Success hides failure...every company does some things right and some things wrong, but when things are going well it can be very hard to get anyone to acknowledge the wrong things. People can always point to the profits and use that as evidence for staying the course, even on internal issues that don't directly relate to P&L. IMO this is what ultimately kills successful companies- once they've conquered their market…
Interestingly, this problem of decadence and decay scales to countries, royal dynasties, empires, etc. We don't yet have any companies so large that their period of decline has been able to last for centuries, but it's theoretically possible. I don't think Oracle and IBM will be around in 2050, but I wouldn't have thought they'd be around now in 2005, so my perception is probably off.
You can generalize this. Isolate the idea that the organization was built on, then see what happened to it. Usually, you'll see that the 'killer app' that gave them the ability to rise to the top created a new world in which everyone has that ability to exercise it. If you don't come up with a new one, you'll eventually lose your privileged position.
There's nothing wrong with this at all. We just are wired to want success so we go looking for personal failures rather than thinking bigger.