Why companies die

1. Gravity wins. In business as in biology, big things grow slower. Over time, it takes more and more effort to produce less and less in the way of incremental returns.

2. Strategies die. Clever strategies get replicated,venerable strategies get supplanted, and profitable strategies get eviscerated.

3. Change happens. Most businesses were never built to change—they were built to do one thing exceedingly well and highly efficiently—forever. That’s why entire industries can get caught out by change.


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