COVID-19 has caused monumental disruptions across the globe. This past week, the federal Centers for Disease Control urged Americans not to travel for Thanksgiving, traditionally the busiest travel period of the year. The United States has experienced more than 252,000 deaths. On Nov. 19, 187,000 new cases were reported, an increase of 73% from the average just two weeks earlier.
Although the news is bleak, there are some extraordinary achievements that deserve attention. The creative energies of our country and its companies remain inspirational and draw upon our innovative traditions. At the beginning of World War II, the productive capacity of Nazi Germany appeared awesome. Within a few years, the wartime production of the United States was multiple times that of Germany, Italy and Japan combined. In 1939, the U.S. Army ranked 19th in size in the world (174,000 men). The army ballooned to nearly 8.3 million active duty soldiers by the end of May 1945.
In October 1957, the Soviet Union launched Sputnik. The Space Age had arrived. In the shadow of the Cold War struggle between communism and the free world, many Americans felt that the Russian success was symbolic of American weakness and a sign of Soviet superiority in technology. By 1969, the United States was able to put a man on the moon. The success of our space program was emblematic of our technological preeminence.
In 2020, the world was totally unprepared for COVID-19. Despite the challenges, Moderna and Pfizer developed vaccines in record time that was dependent upon gene-based technology, a novel approach. Traditionally, vaccines take years to bring to market because researchers have to spend enormous time developing and growing a virus. These viruses generate an immune response when injected. In gene-based methodology, the vaccine derives from taking advantage of the body’s own molecular machinery.
As a consequence of COVID-19, Bill Gates, founder of Microsoft, predicted that business trips will be reduced by more than 50% and office usage will decline by 30%. The home office has increased exponentially and business meetings have been converted into business video calls. Gates said, “We will continue to go to the office and will continue to do business trips, but much less.” In October, Microsoft announced that its employees could work from home permanently for at least 50% of their working hours.
The coronavirus pandemic has proven that Americans have an insatiable appetite for streaming services. Viewership at Netflix soared, with a record increase of 16 million in the first quarter of 2020. Disney has attracted close to 55 million subscribers in just six months. By contrast, Regal Cinemas announced in October that it would suspend operations of all of its theaters in the United States.
The pandemic has helped Amazon and Amway, the world’s largest direct-selling company. Total e-commerce sails nearly doubled in May. Amazon has 38% of the e-commerce market; 115 million households in America use it. Amway conducts business in more than 100 countries.
At a relatively young age, I learned that I was mortal. However, I did not recognize that the life of companies was also finite. I had believed that behemoths such as Eastman Kodak, Sears Roebuck, Texaco, Westinghouse, RCA and others enjoyed infinite life. Over time, I learned that these companies had erected the equivalent of a Maginot Line. The French created the Maginot line that consisted of concrete fortifications to deter invasion by Germany. The Maginot line proved ineffective as the Germans invaded through Belgium, outflanking the Maginot line. Seemingly huge dinosaurs without evolving can become extinct. Survival and success require ongoing innovation to beat the forces of creative destruction. Creative destruction is the process of industrial mutation that continuously revolutionizes the economic structure from within, destroying the old one, and creating a new one.
Originally published in the Sarasota Herald-Tribune