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0:00
My name is Andrew Ward.
I'm a professor at
Lehigh University and
co-author of
Strategic Management
from Theory to Practice.
This talk is about
how firms build
resilience to
disruptive mega-trends
in their environment.
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We often hear statistics
about the failure rate is
small entrepreneurial
companies and
we're not surprised that
reduce relatively high.
But when it comes to large
well-established companies,
we tend to assume that just as
they had been around
for a long time,
they will continue to be
around for decades to
come, but that's not
necessarily true.
Take a look at this list of
Fortune 500 companies from
20 years ago, in 2002.
The Fortune 500 represents
the largest 500 companies
in the United States.
These companies have
been around for decades,
some more than 100 years.
They are household
names companies
that we're all familiar with.
Yet, if you look at
this list of companies
that were on the Fortune
500 20 years ago.
These household names that
they were 20 years ago,
may not be familiar
to you at all,
or they may be a distant memory.
They have all been
disrupted and disappeared
despite being leading companies
in their industries at the time.
But look at the list of
companies on the right.
These are all Fortune
500 companies today,
yet 20 years ago,
you'd probably never
heard of them.
Many hadn't even been thought
of by their founders,
and others would just
small startup companies.
Yet, today they are
the dominant companies
in their fields
and companies like
Amazon, Alphabet,
Netflix, and Facebook,
whose products you
might use every day.
Disruption creates
both destruction
to some companies and
opportunities for others.
