"There was a time when it seemed absolutely unfathomable that large, entrenched companies could see their corporate advantages slide away.
But as the recent collapse of Blockbuster, Lehman Brothers, Kodak, or various retailers have taught us, there are no longer any guarantees around corporate longevity.
In 1964, the average tenure of a company on the S&P 500 was 33 years, but this is projected to fall to an average of just 12 years by the year 2027 according to consulting firm Innosight.
At this churn rate, it’s expected that 50% of the S&P 500 could turnover between 2018-2027.
For established companies, this is a sign of the times. Between the rapid acceleration in the speed of innovation and continuously falling barriers to market entry, the traditional corporate world finds itself playing defense.
For investors and startups, this is an interesting prospect to consider, as disruption now appears to be the status quo.
The next big company to dominate global markets be found in someone’s garage in India today?
In 1964, the average tenure of a company on the S&P 500 was 33 years, but this is projected to fall to an average of just 12 years by the year 2027 according to consulting firm Innosight. At this churn rate, it’s expected that 50% of the S&P 500 could turnover between 2018-2027.
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