Apple is being replaced by a company you have never heard of

In 1987, IBM’s business was more successful than ever. American IT-company has become the world's largest corporation with a market value, for the first time exceeded the mark in 100 billion dollars.

Фото: Depositphotos

In the wake of the technological revolution, IBM left far behind such giants as General Motors and US Steel.

These companies had their stellar years: in 1957, GM became the first company whose market value surpassed 10 billion dollars, and US Steel in 1901 was the first with 1 billion.

However, 30 years later, IBM can no longer boast such impressive performance.

The company is still an important player in the computer world, but today it is not even included in the first 30 companies according to the Fortune business magazine.

This rating was created in 1955, since then it has been updated annually - 500 companies are ranked in it by the volume of their cash turnover.

Ups and downs

In nature, survives the one who best knows how to adapt. Some analysts are observing the same evolutionary process in the business world.

Experts believe that IBM has lost its leading position due to the acceleration of the processes of natural selection among corporations.

A study conducted by the American consulting firm Innosight showed that the average time that the company spends on the Fortune-500 list was reduced from 33 years in 1964 to 24 years in 2016. According to forecasts, by the year 2027 this period will be reduced to 12 years.

The driving force behind this selection of analysts is considered a surge in new technologies, which discord the work of old and already established companies.

A good example is Apple. The company, which released the first iPhone in 2007, recently surpassed $1 trillion to become the most valuable company in the world.

In terms of turnover, Walmart is on the first line in the Fortune rankings today, but Apple is rapidly rising. If in 2005 year, Apple took only 263-e place in the list, this year it moved to fourth position.

However, the rapid growth of the company can be replaced by the same rapid decline.

American consulting company Boston Consulting Group (BCG) believes that change here is almost inevitable.

She predicts that in five years, the Fortune magazine list will be 75% made up of companies that are practically unknown to the general public today.

“We are witnessing a confrontation between irresistible force and immovable objects. This strength lies in technological leaps, which will have a strong impact (on the development of companies),” BCG expert Patrick Fort said in 2014.

Фото: Depositphotos

Does this mean that the “new Apple” will be a company that no one has heard of yet?

“Yes, very likely. Today, it is easier for a small group of people to create a very successful business on the Internet than at any time in history,” says technology expert Dion Hinchcliffe of Constellation Research.

“One of the most famous examples is WhatsApp. When it was acquired by Facebook for $2014 billion in 19, it had just 50 employees. Given the increasing pace of change in the business world, it is unlikely that we know anything about the company that will be the most valuable in 20 years,” says Hinchcliffe.

However, the popular instant messenger sowed a real panic in the telecommunications market.

As expected, by the end of this year, the total decline in revenues in the field of telecommunications will reach 386 billion dollars over the past six years, and WhatsApp losses will only replenish this amount.

And this is just one of the areas where things are not going very well. Such large Internet companies as Netflix, Uber, Airbnb, Facebook, Spotify and Amazon are experiencing a drop in revenues.

Meanwhile, Fortune magazine is trying to answer the question of who will be the “next Apple.” Since 2015, the publication has been trying to guess who will become the leader among corporations in the 2020s.

Leadership Change

There are already well-known companies in the list: for example, Facebook, Alphabet and Amazon.

At the same time, the list of potential leaders of 2025 of the year is fundamentally different from the list of 2018 of the year: there are no longer any trading monsters like WalMart, oil giants like Shell and auto giants like Toyota; General Motors also does not appear there.

Close attention is focused on young companies: in particular, the GrubHub food delivery service and the California-based medical corporation Intuitive Surgical, which is introducing robotic surgery technology.

Robots, artificial intelligence and medical services are among the areas that predict the fastest growth in the near future.

There is also genetics, space tourism, energy management and cloud computing systems.

Фото: Depositphotos

“Every company can face the digital boom, but companies that have been quite successful in the past are often at greater risk,” says Dion Hinchcliffe.

“They are usually more confident that they can survive in the future and that they have always done everything right. This confidence can turn into myopia,” says the expert.

Myopia can lead to agony, even when it comes to market leaders. Suffice it to recall the company Blockbuster, Nokia or Kodak. All of them were market leaders until new digital technologies dropped them from the pedestal.

For example, Blockbuster’s video rental network once consisted of 8000 stores in the United States, and in July there was only one open 2018.

“Of course, some companies realize that they no longer play the same role in a changing economy, despite Herculean efforts,” says Paul Leywand, an analyst at PriceWaterhouseCoopers.

In the end, such natural selection is clearly seen in the history of Fortune magazine ratings: only 54 companies have consistently been on the 500 list of the most successful firms since 1955.

According to Paul Leivand, the recipe for survival is the ability to plan far in advance.

“The danger for many companies is that they are too focused on their current projects - especially if they are profitable - and do not invest in opportunities outside the current business,” the expert notes.

Read also on ForumDaily:

The new development of Apple will use the iPhone as a passport

15 well-known companies for which you do not need higher education

How to know that Google really records every step you take.

'You won't get anything': Steve Jobs's daughter first spoke about a difficult relationship with her father

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.