One of the basic laws of nature is (commonly) called "survival of the fittest."  The idea being that the organisms that are weak or unable to fend for themselves will not survive and over the long term and only the fittest of the species will survive.

Today, the same idea is sometimes applied organizations, especially those that are set up to be profit generators.  This may be the way things should be.  The question is "What is a fit organization?"  Is it one that dominates its segment by striving to always offer the lowest prices?  Is it one that ranks highest in customer satisfaction according to a well-known national customer survey organization.  Is it one that holds the number one market share in one of the major consumer markets in the USA?  Or, is it one that dominates an industrial supplier market by signing major long term contracts that enable it to stop competition from even being considered as a replacement?

In fact, it is none of the examples mentioned above.  In the overall business landscape all of those organizations are likely to be replaced at some point in time.  The reason I write this is that companies can become strong enough to fend off competition.  But many, if not most cannot seem to fend off major shifts in technology or global economic trends. 

One interesting situation that is developing now is the dynamic in the automotive industry.  The major automotive manufacturers continue to ply their fossil fueled vehicles equipped with relatively low level technology.  Meanwhile several brand new car makers are introducing and selling electric vehicles.  And, Google, of all companies is seeking government approval in certain states to take to market vehicles without human drivers.  What exactly are the current auto makers doing to be prepared to respond to the new consumer trends and the market dynamics in the transportation field?

One begins to wonder if the conventional auto makers are not unlike the makers of steam locomotives were when the first Diesel-electric hybrids were introduced in the early part of the twentieth century.  They continue to fight over a market that is beginning to get smaller as consumers shift their interest to alternative technologies and modes of transportation.  Another factor is the consumer.  There is a trend among young consumers in Japan who do not own automobiles and, in fact, have no interest in owning one.  They do not want to pay the every increasing costs of ownership, including the high costs of parking in their big cities.  They also prefer to spend their disposable income on more self satisfying items like smartphones, netbooks, etc.  The future of this industry will, indeed, be a very interesting dynamic.

What, then, constitutes a fit organization and one that will survive?  My view is that it will: 1. Take a long view of the future of society, technology and the economy via a strategic plan; one that looks out at least ten years.  2. Invest in innovation that serves to respond to the long term trends in society.  3.  Work to encourage innovation in all that they do, not just in their current products and services. 

The makers of steam locomotives were, no doubt, the fittest of the companies making steam locomotives.  What good did that do for them when a completely new technology came along and made their product completely irrelevant?