Competition, as a creative destroyer, results in nimble, dynamic organizations. They must adapt and prosper or they soon die. All companies have a lifecycle. Companies are conceived, prosper and die. The numbers are stunning. The life expectancy of a typical multinational is between 40 to 50 years. This means that one-third of the companies in the Fortune 500 will have merged, been broken up, or have failed by 2010.
Think about it! Your employer with tens or even hundreds of thousands of people may not exist in 15 years. And, this is more pronounced in Europe. The Straix Consulting Group discovered the life expectancy of a typical European and Japanese company is less than 13 years.[i] The uncertainty of a lifelong job with a large company is a major driver behind our Brand U Nation.
The Swiss watch, buggy whip, automotive, banking, and other industries often illustrate dramatic competitive and business paradigm shifts. The buggy whip industry totally disappeared, as the automobile became the favored method for moving people. The Swiss watch industry didn’t disappear but was totally transformed by electronic watches.
[i] “How to Live Long and Prosper,” The Economist, May 10, 1997, p. 59.