Business eras typically last about 40 to 50 years, consultants at Bain and Company say, and we are on the cusp of the next era. Speed is among the new requirements, as more value is delivered by services and digital products that can be created rapidly.
So disruptors such as Google, Facebook, Tencent, Tesla, Alibaba and Amazon provide profiles of tomorrow’s market leaders, some would argue. It long has been argued that a firm can be big and low cost, or can be focused and differentiated, but not both.
The digital disruptors have broken those rules.
Capital access is important, but less so than in prior eras, Bain consultants say.
Most industries also have become more winner-take-all. A Bain study of 315 global corporations found that just one or two players in each market earned (on average) 80% of the economic profit.
Management horizons additionally are shorter.
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