Companies are dying faster than ever before. Covid-19 as a Black Swan event is only accelerating it.
Between 2000 and 2015, 52% of the Fortune 500 were merged, acquired, went bankrupt, or fell off the list.
At the current rate, research predicts 50% of the S&P 500 will be replaced within the next 10 years. Maybe sooner.
Our curiosity led us to investigate why some companies die, and why others survive. We believe the answer boils down to how they define their business.
What business are you really in? Knowing the answer is no longer ‘nice to know,' it’s do or die.
Traditionally, companies have defined the business they are in by their flagship product (e.g. a soft drink company), their enabling technology (e.g. a motor vehicle company), their competitive category (e.g. a telecommunications company), or their business or distribution model (e.g. a luxury goods retailer).
Traditional definitions of a business limit an organization’s ability to predict or adapt to external change. These definitions are often tied to static views of industries, business models, culture, and technologies. They can also contribute to a failure of vision, as they don’t provide a clear north star for action.
Future-proof companies have a different way of defining the business they are in. They define themselves based on a lasting benefit they bring to the world. A benefit that often transcends technology, business models, and even core product offerings. And they bring it to life through concrete actions.
At Studio Jigsaw, we believe the key to surviving - and thriving - is for companies to define, or redefine, precisely what business they’re in, beyond the products and services they offer.
The rate of change in the business world is increasing. Cycles of innovation are getting shorter. Consumers are quicker to evolve their needs — and quicker to abandon a brand. Competitive landscapes are changing faster: every year new companies enter the market providing appealing alternatives to the business models, customer experiences, and brand purposes of legacy companies.
Organizations need to determine a clear and generous purpose and reinvent their businesses around this lasting benefit they bring to the world. We know this unique approach drives innovation, focus, and relevancy.
Do or Die is our modern survival-skills platform for leadership teams seeking to drive growth and ensure longevity in this unprecedented time of disruption.