New Arenas of Competition

Recent research identifies a shift in the global business landscape towards new 'arenas of competition,' which present different rules of engagement compared to traditional industries. These arenas, now encompassing sectors like e-commerce and electric vehicles, represent roughly 10% of all industries but account for 45% of market cap growth. A key distinction is that companies emerging from these arenas are substantially larger, often eight times more, than their predecessors, suggesting a fundamental change in how value is created and retained. This dynamic is characterized by higher growth rates and a unique 'shuffle rate,' indicating a greater fluidity in market leadership among these industries.