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Beyond the Core: Expand Your Market Without Abandoning Your Roots by Chris Zook

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6

Transforming Through Adjacency Moves

Redefining the Core Through Adjacencies

Most companies do not live for very long. The average life span of a company in the major industrial economies today is only about twelve years, down from more than twenty-five years for companies in existence in the 1950s. A study by The Economist suggests that the ultimate life span of even established multinational corporations is only about forty years, with life ending in takeover or bankruptcy.1 For companies in the Fortune 500 today, this would imply that one-third would no longer exist as independent entities just twelve years from now—all once-strong companies that somehow failed to adapt their core fast enough to even more rapidly changing market conditions. ...

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