ZDNet reports that a study by the Kent State University Business School has claimed that successful high-tech firms such as Google, Microsoft, Amazon and Yahoo could be relegated to the annuls of history if current business cycles repeat themselves.
The study examined the profits of 3,200 of the largest companies on the US Stock Exchange between 1960 and 2004 and found that a third go out of business after an average of 23 years into their existence.
“Changes are coming faster and virtually no-one is immune,” professor Greg Hackett stated. “Everybody gets into trouble. But when you are unprofitable three out of the last five years, it’s gone. Kiss it goodbye."
It also found that overall profits have dwindled by 40 per cent in the 40 year period, and that 80 per cent of companies are declining and failing three times faster than they did back in 1960.