The Cloudcast

How Incumbents Thrive and Survive

10 snips
Apr 16, 2023
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INSIGHT

Incumbents Largely Persist Over Decades

  • Incumbents rarely vanish en masse; many persist or transform rather than disappear.
  • From 1995 to 2023 about 40% stayed, ~50% merged or were sold, and only ~7–8% dropped out.
INSIGHT

Collapse Stories Are Exceptions

  • Famous collapse stories like Blockbuster, Nokia, and Kodak are outliers rather than the norm.
  • Most incumbents use brand, supply chains, and partners to withstand new tech entrants.
ANECDOTE

Apple Versus Tesla Example

  • Aaron contrasts Apple and Tesla to show different disruption outcomes.
  • Apple remade its industry with the iPhone, while Tesla has not yet overtaken global auto volumes.
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