fbpx

Insight Report Finds 52% of Companies in the Fortune 500 List Have Disappeared Over the Last 20 Years

12 June 2024 – Research by WatchMyCompetitor (WMC) – the AI-powered competitive intelligence platform – has identified that more than half (52%) of the companies in the Fortune 500 list in 2003 no longer exist today.

The business world has changed dramatically over the last 20 years, with advancements in digital technology – and now AI – disrupting practically all sectors, including travel, finance, pharmaceutical, retail and technology itself. Some of the former Fortune 500 businesses that have ceased trading include PanAM, WorldCom and TWA, with many of them declaring bankruptcy before their eventual demise. In their place are giants such as Apple, Amazon and Microsoft, while General Motors, Exxon Mobil and Walmart have retained their place.

The research was conducted as part of a report by WMC into the reasons why businesses decline. It has identified six common reasons that businesses of today can learn from: losing the lead in innovation; poor strategic decisions; reacting too slowly; marketing strategy not aligned with industry trends; unsuitable company culture; and issues relating to product or service quality.

Commenting on the research, co-founder Richard Jackson said:

“Over the last 20 years, we’ve seen a seismic shift in adoption of technology and the speed at which companies add, change and remove products and services. The three-year product life cycle of the early 2000s had been reduced to less than a year by 2020. Now, in 2023, product updates occur daily, sometimes even multiple times in a day, making it increasingly difficult for businesses of any size to maintain their market position, withstand the threat of competition and grow revenue.”

The CI platform’s research also found that 72% of the original FTSE 100 companies from 1984 have also disappeared. Meanwhile, the Bureau of Labor and Statistics (BLS) reports that 65% of companies fall away during the first 10 years of existence!

Jackson concluded:

“Every organisation in the world is vulnerable in the new digital economy. Understanding the six reasons we’ve identified as part of this report can help businesses of all sizes to stay relevant, challenge the status quo or protect what they have.”

WMC’s report goes on to offer practical steps businesses can take to prevent the fates of the former Fortune 500 and FTSE 100 members that no longer exist or are not what they once were. The full report can be downloaded via WMC website here. Source: finance.yahoo.com