Most companies embrace change when they first enter the market, because change presents opportunities for start-up companies to outmaneuver larger organizations that are less adaptable and more reliant on the status quo. Anyone who has been part of a quickly growing start-up organization knows the feeling of stealing away market share simply because it’s more in tune with the buyer and more effective at marketing and delivering its solution. Those companies are drivers of change, not victims of it. The impact this dynamic is highlighted in the book Creative Destruction by Richard Foster and Sarah Kaplan when discussing S&P 500 companies: “If history is a guide, no more than a third of today’s major corporations will survive in an economically important way over the next twenty years. Those that do not survive will die a Hindu death of transformation, as they are acquired or merged with part of a larger, stronger organization, rather than a Judeo-Christian death, but it will be death nonetheless. And the demise of these companies will come from a lack of competitive adaptiveness. To be blunt, most of these companies will die or be bought out and absorbed because they are too slow to keep pace with change … Read More
