We have now seen far too many corporate giants fizzle out. In fact, while the average lifespan of humans has kept on going up, it has gone the other way for companies. The average lifespan of most companies was 90 back in the 1920, but it is now a mere seventeen. Across sectors and industries, we see a four-stage pattern for companies. The first stage is dominated by maverick founderswho excel at business innovation. Key examples include Anita Roddick at Body Shop or Ray Kroc at McDonald’s. The next stage involves expanding abroad done ever so successfully by Unilever, P&G, Nestle and Nirma. Beyond a certain level, the third stage kicks in where competition starts cutting into the shares. Then, distraction sets in so that the brand cannot capitalize on its legacy. From here on, there are three options, one being that the tired legacy brand succumbs to niche, fleet-footed rivals. The challenge of ecommerce cannot be ignored either. So, the mavericks need to be brought back.

Source:https://www.london.edu/faculty-and-research/lbsr/going-extinct-why-corporate-giants-die

Uploaded Date:21 November 2018