Hello everyone. Today’s post I want to dedicate to rumination about the life cycle of technological companies. Are they easy to go beyond the times and survive hundred years, as did their peers in other industries?
Recently HP got split into two separated companies and now is traded on exchange as two different units. HP was a pioneer, the first techno start-up of Silicon Valley, the company that gave an inspiration to new breed of other audacious geeks to believe they can create something similar. Now techno giant has hard times…
Now, like never before, techno companies are vulnerable and I believe there are several reasons for that:
- Times are changing faster, especially in digital world: company that popped up could enjoy the trend for years, calmly developing the idea. Now trends change so rapidly, that no one can feel secure with just a good idea.
- What we see now is a world of start-ups – one can get funds and initial investors right away. That favored the condition for mushrooming hundreds and hundreds of start-ups. Can they be thread for acknowledged technological firms? Absolutely. Breed of new entities like Facebook, Google, Airbnb, Uber and others are so young compered to Sony, Apple, Microsoft and others. And still they compete even right now.
- Companies, which stand only on sole idea, are doomed. The great example (not from virtual world though) is a PLAYBOY. There was only one reason why man all over the world kept buying the magazine: eagerness for naked flesh. However wind changed, a nudity may be found everywhere on Internet and the magazine struggles. Therefore the companies, which are not bothered with establishing affiliate businesses, will eventually have hard times. And now it’s reasonable, as never before – companies can’t afford to have lack of innovations.
So having these thoughts in mind, I believe, that companies in technological field are unlikely to survive hundreds years in their original state – if we will have a Facebook it will not be famous for social networking.