Hajra Naz
Over the world, businesses are confronting an alarming trend—companies are battling to survive for long. According to an analysis by Statista, the life expectancy of companies on the Standard & Poor’s (S&P) 500 Index has essentially diminished over a long time. In 1965, the normal lifespan of a company was 32 years; by 2020, it had dropped to fair 21 a long time. The projection recommends this number will proceed to decay all through the 2020s.
Further, a 2023 EY report uncovered that the normal life expectancy of an American S&P 500 company, once 67 a long time, is present as it were 15 a long time. Indeed well-prepared companies are not safe from these challenges, highlighting the trouble of building a commerce that can persevere for eras.
1. Adapt or Die
Charles Darwin’s well-known saying, “adapt or die,” applies to business too. Companies should know the changing customer needs and market trends to stay relevant. Success comes from adaptability, supported by careful planning and teamwork.
LEGO is a great example. Founded in 1932, it started with wooden toys before switching to plastic, which became its signature. However, by the 2000s, too much innovation and rising competition brought LEGO close to bankruptcy. Instead of chasing completely new ideas, LEGO adapted by improving its existing products and teaming up with popular franchises like Harry Potter and Star Wars. This strategy not only saved the company but also helped it grow into new areas, like movies.
Similarly, KMB adapted during World War II by using lorries as temporary buses when its fleet was rendered unusable. Over the years, KMB has consistently embraced adaptability to navigate evolving challenges, ensuring its long-term success.
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2. Balance Innovation with Stability
Innovation fuels growth, but overdoing it can cause instability. The trick is to strike a balance—embracing new ideas while keeping business operations steady.
To do this, businesses should use data-driven risk analysis to guide decisions. Innovation should be thoughtful, steady, and focused on achieving the company’s goals—not change for the sake of it. Teamwork is also essential. By collaborating within the team, using external resources, and listening to customer feedback, businesses can ensure ongoing, meaningful improvements.
By integrating innovation into the company’s culture without overextending resources, businesses can maintain their competitive edge while staying grounded.
3. Be Socially Responsible
At its core, business is about people:
- Consumers
- Workers
- The community at large
Strong social responsibility demonstrates a company’s long-term dedication to society, not just its shareholders.
Customers increasingly value socially responsible brands. According to a Sezzle survey, 81% of participants—mostly millennials—prioritize buying from companies that share their social ideals. Companies like Gibsons Games, a 104-year-old jigsaw puzzle manufacturer that prospers by emphasizing family-friendly goods and moral business practices, have profited from this demand.
KMB has a similar philosophy. It has always placed a high priority on accessible and reasonably priced public transit for citizens of Hong Kong who do not require government assistance. KMB shows its commitment to giving back through initiatives like “Friends of KMB,”. It is the first volunteer group started by a public transport company.
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Building a Legacy
Companies must put social responsibility, innovation with stability, and adaptability first if they want to create a corporation that endures for generations. Businesses can overcome obstacles and leave a legacy that lasts for generations by adhering to these values, serving people, and changing with the times.
