A Leader’s Product Is the Company

“A leader’s product is the company.”
— Ben Horowitz

Of the companies that were included in the Fortune 500 in 1955, 429 no longer exist today.

At the same time, the average length of time a company remains on the list has fallen fourfold—from 60 years to just 15 years.

(15 Most Valuable Company Brands by Market Capitalization, 2000–2021)

At first glance, technological development may seem like the obvious explanation. But the real reason is that the leaders of these organizations failed to adapt their offerings to changes in customer behavior driven by technological progress.

Throughout history, one of a leader’s most important responsibilities has been to create and retain customers by ensuring access to products and services that exceed their expectations. If an organization fails to do this, customers will find another provider. It makes little difference whether that provider is a company or a government.

The leaders of Nokia and Kodak, both dominant players in their respective markets at the beginning of this century, have been asked what they did wrong to lose their market-leading positions