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Why are there so few new car companies? Because Ford, GM, and Chrysler did a great job of building brands, distribution, and acquiring their smaller competitors
by replicatorblog 10y ago
Why are there so few new car companies? Because Ford, GM, and Chrysler did a great job of building brands, distribution, and acquiring their smaller competitors. The World Wars and subsequent reinvestment in the impacted countries yielded some great international competition. Now Tesla and maybe Apple will enter.
If you look at almost every industry there is a ~50 year period where there is a huge amount of creative destruction and then a trend towards conglomeration. It's why we still use Alexander Graham Bell's phone services, Thomas Edison's industrial equipment, and watch movies from the Warner Brothers.
If you look at a list of the top 25 Pharma companies, you'll see that there are as many companies on the list founded before 1781 and after 1981. This will likely happen with tech too.