It has not been my experience that large private organizations are any more efficient at shedding useless jobs than public organizations. Maybe, maybe during a round of layoffs but good people are let go during those too. It is easily overlooked that corporations are a legal fiction, not a real entity. A business can’t do anything, only the people in it. Managers never recommend they be the ones laid off even if they’re the problem (though middle or senior management might accidentally lay off a bad manager or two on rare occasions, but again never lay off themselves). Also I’ve seen in larger companies, no division head wants to get a smaller headcount unless they’re a new person specifically brought in to be a wrecking ball.
Similarly, “the market” is a convenient fiction, a shorthand that occasionally exhibits describable collective behavior but ultimately is also composed of people. There is creative destruction but it takes place over decades, far too long for any individual activity to be pointed to and say that ruined the company except in the most extreme cases.
It's that businesses go out of business -- see Nokia, Blackberry, etc.
Public organizations can't be easily replaced by a competitor -- I think being replaced by a competitor is more of an occurrence than fixing it from the inside.
Similarly, “the market” is a convenient fiction, a shorthand that occasionally exhibits describable collective behavior but ultimately is also composed of people. There is creative destruction but it takes place over decades, far too long for any individual activity to be pointed to and say that ruined the company except in the most extreme cases.