Forty percent of companies will not survive the next 10 years, predicts Cisco Systems CEO, John Chambers. It is safe to regard his claim as realistic, especially since the disruptive force of change is constantly on the increase. The music and travel industries have already faced it, and now it threatens many other fields: the digital revolution. Next in line are the financial services, trade, health care and industrial sectors. Not one company in these sectors should assume that their current business model will still be successful in 5 or 10 years’ time. The pressure to change is likely to increase, which will present entrepreneurs and CEOs with yet greater challenges – the Internet of Things, Big Data and augmented reality are just a few catchwords.
Some businesses are navigating this challenging environment very elegantly indeed. Tesla, for example, became one of the highest-valued car brands in the premium segment over just a few years. After only 12 years as a company, Tesla has a market value of around CHF 30 billion. For comparison, Audi is worth approximately the same amount, despite having been in the market 34 years longer than Tesla. Uber has established a company value of some CHF 50 billion in just six years. According to current estimates, after seven years of operation, Airbnb is valued at around CHF 25 billion, placing it not far behind Hilton, the largest hotel chain in the world. Seemingly effortlessly, these companies have established themselves as the strongest brands in the world, setting an example of how to future-proof brand management in the digital world.
What do Tesla and co. do differently from traditional companies? A comparison sheds light on some fundamental differences: