Innovation and Competition: The Rise of HyperCompetition

Market dynamics over the last 80 years

l1917 Forbes 100 published

–1987 39 still existed

–18 still on Forbes 100

–2 performed better than the market over the period

lS&P 500 in 1957

–1997 74 remained

–12 outperformed the index

–Group performance 20% less per year than S&P 500


	IN 1920’s turnover on S&P 500 was 1.5% Lasted 65 years
	IN 1998 10% Last 10 years

	Why? Markets are more efficient.
	They throw non performing companies out. Corporations are based on continuity. Their focus is on operations. Markets are built on discontinuity; their focus is on creation and destruction.