Has your business grown enough? Then it's time to kill it!

In the globalized and increasingly competitive business world, it is necessary to always place yourself in an unstable position. Stability does not exist!

Globally, hundreds of companies emerge every day challenging and putting pressure on those that are provisionally established in the market. Yes, most new companies will not last long. Several factors corroborate this, which can be generally explained by Darwin's Law.

And precisely for this reason, none of the categories (established and newcomers) can afford to desire or maintain market stability, regardless of their current size.

The pressing need for expansion ceases to be a strategy and becomes a neural part of the company's management. For many, more important than seeking a better market share, not growing (expanding, changing, diversifying) can be a matter of survival.

There are countless examples in this regard, but I would like to bring some classic cases that portray this threatening scenario well:

BlackBerry: It was once a dominant player in the smartphone market, known for its secure messaging system and physical keyboards. However, the company failed to innovate and adapt quickly enough to compete with rivals like Apple and Samsung. BlackBerry remained focused on its enterprise and government client, neglecting the rapidly growing consumer market for smartphones. As a result, BlackBerry lost significant market share and relevance, eventually leading to a decline in sales and a loss of competitiveness.

Blockbuster: It was a giant in the video rental industry during the late 20th century. However, the company failed to adapt to changing consumer preferences and technological advancements, particularly the shift from physical rentals to online streaming. Blockbuster had the opportunity to acquire Netflix in its early stages but chose to remain focused on its brick-and-mortar rental model. This decision ultimately led to Blockbuster's downfall as Netflix grew exponentially and became a dominant force in the entertainment industry.

Kodak: It was once a dominant force in the photography industry, known for its film cameras and photographic materials. Despite inventing digital camera technology in the 1970s, Kodak hesitated to embrace digital innovation due to concerns about cannibalizing its lucrative film business. This reluctance to pivot towards digital ultimately led to Kodak's decline and bankruptcy in 2012 as competitors like Canon and Nikon gained market share in the digital photography market.

Nokia: It was once a leading player in the mobile phone industry, known for its durable and user-friendly handsets. However, Nokia failed to anticipate and respond effectively to the rise of smartphones and touch-screen technology. The company remained focused on its traditional feature phone business, neglecting the growing demand for smartphones powered by operating systems like iOS and Android. As a result, Nokia lost significant market share and ultimately sold its mobile phone business to Microsoft.

Xerox: It struggled to innovate and diversify its product offerings. The company became too reliant on its traditional copying business, failing to adapt to changing technological trends and customer needs. Moroever, intense competition from rivals such as Canon, HP, and Ricoh eroded Xerox's market share and profitability. These competitors offered similar products at lower prices, putting pressure on Xerox's margins and customer base.

These examples illustrate the consequences of companies failing to adapt and grow in response to changing market dynamics and technological advancements. By remaining complacent or resistant to change, these companies missed out on opportunities for innovation, expansion, and long-term success, ultimately leading to their decline and in some cases, their demise.

In essence, executives should always be willing to critically evaluate their businesses and make tough decisions, including the possibility of killing off or restructuring existing operations, to ensure the company's long-term viability, relevance, and success in a dynamic business environment.