I think it's simply that most humans just want cash cows. Entrepreneurship attracts the most ambitious, but a lot of people just want enough money to do what they want and not be dishonored.<p>Also this seems to happen more with American businesses, which often specialize. Asian businesses tend to do everything, e.g. noodles, dried fish, electronic devices, data, wool, plastic refining, microwaves, logistics, real estate, education, lending, etc.<p>FAANG has proven that the specialization model works brilliantly, and so many corporations mimic the cash cow approach.<p>Another model is to have a holding company invest in multiple other forms of specialized businesses. Google does search and data, and doesn't innovate as much. But Alphabet can do all the experiments it wants, fueled with Google income. People look at Google and wonder why it isn't more innovative, but that's not the role Google tries to take.