Companies grow fast, but die faster
75
1950 2000 2015 2016 0 15
2010
1965 2001 market leadership toppled easily
2020
Shorter product cycle
Shorter company’s life span
10%
20%
2010
2020
2010
2020
2010
2020
established companies bankruptcy
Increasing patent applications
Higher share of profit from innovation
Source : In Creative Destruction (2001), McKinsey’s Richard Foster calculated that the lifespan of Fortune 500 companies which was 75 years in 1950, would sink to less than 15 by 2021 Standard & Poor confirms the trends, Deloitte Shift Index Series
At current churn rates, 50% of S&P 500 companies could be replaced from 2018-2027
33
years
22
forecasted 15 - 20 years
2030
1965
2023
Source : Signal,2022
29
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