Built to Last: Lessons in longevity from 100-year businesses

Did you know that the oldest operating business in the world was founded in the 6th century? That makes it more than a thousand years old.

Headquartered in Osaka, Japan, Kongo Gumi is a construction company founded in 578 A.D. that specialized in building temples and shrines for local nobility. The family-owned business remained under family ownership for 15 centuries before being acquired by the Takamatsu Construction Group in 2006. At a time when publicly traded companies have an average lifespan of around 10 years, Kongo Gumi remains an incredible example of long-term business success.

While a thousand-year-old business is rare, many companies today have operated for more than a century and continue to succeed. Unfortunately, these organizations are becoming the exception rather than the norm. Research shows that 50 years ago, the average lifespan of a Fortune 500 company was around 75 years. Today, that number has declined to approximately 15 years.

How many of these companies do you recognize? Armstrong Rubber, Cone Mills, Hines Lumber, Pacific Vegetable Oil, and Riegel Textile. Probably none. These were all Fortune 500 companies that were publicly traded less than 60 years ago.

Now consider companies you likely know: UPS, L.L. Bean, Kraft Foods, and Kellogg’s. Each of these businesses is more than a century old. Why have these companies continued to succeed while many newer organizations have struggled?

It is not because they face less competition. There are plenty of successful retailers and food brands competing in the same markets. It is also not simply because of product uniqueness. After all, can most consumers truly tell the difference between Pepsi and Coke?

So, what can modern businesses learn from these long-lasting organizations? What strategies have helped legacy companies like Ford, American Express, and Jim Beam remain successful for generations?

Don’t just build a product, build a system

Companies need to be more than one-trick ponies. Founders must have the vision to anticipate long-term challenges and build organizations that can adapt when those challenges arise. Having one successful product does not guarantee long-term growth or sustainability. Companies like FitBit, GoPro, and TiVo are examples of products that achieved early success but struggled to maintain long-term momentum.

The best way to build a business that can outlast a single product is to identify an underserved market opportunity and create a system around it.

FitBit is a product. It can measure your heart rate, track your steps, and monitor calories burned. Like many modern devices, it also connects with a mobile app.

The Apple Watch, however, is part of a broader system. It offers many of the same features as a FitBit but is deeply integrated with the Apple ecosystem. Users can make calls, respond to messages, and access online services directly from their watch.

More importantly, the Apple Watch continues expanding into healthcare by connecting users with health providers, tracking ECG changes, and helping identify potential health concerns. Through one connected device, Apple has created an ecosystem that goes beyond a simple wearable product. And yes, it can still tell time.

The System that Ford Built

Automobile giant Ford is one of the best-known examples of a system built by a legacy corporation. In 1896, a year considered by many to be a turning point in automobile history, Henry Ford built his first successful motorcar in his garage. While this innovation was significant, an even greater breakthrough was still to come.

In July 1903, the newly formed Ford Motor Company produced the first automobile built using an assembly line at its Mack Avenue plant. A few years later, in 1908, the company introduced the Model T.

Unless you are an automobile enthusiast, you may not know the name of Ford’s first car. However, almost everyone has heard of the legendary Model T. That is because the Model T was more than just a product—it represented the creation of an entire system.

As the first mass-produced automobile, the Model T helped make car ownership accessible to a much wider audience. Before this, automobiles were largely considered luxury items, with smaller companies producing customized vehicles for wealthy customers. The assembly line changed that completely. It allowed cars to be produced faster, reduced manufacturing costs, and enabled Ford to meet large-scale demand.

By identifying a market opportunity—the growing demand for personal transportation—and creating a way to meet that demand through assembly line production, Ford built a system that transformed the automobile industry. Although the Model T stopped production decades ago, the foundation Ford created continues to influence automobile innovation more than a century later.

Prepare for crisis

F. Scott Fitzgerald once wrote,

“There are no second acts in American lives.”

He was referring to the short-lived successes of the movie industry in the 1920s, but the idea can also apply to many businesses today. Several industries are experiencing rapid transformation due to globalization, technological advancements, and the growth of the internet.

These changes have accelerated the speed at which new ideas reach the market. An innovation created in one part of the world can influence businesses globally within just a few years.

Consider the rise of 3D printing, a technology that was once considered too expensive for widespread adoption, or drone technology, which was previously limited mainly to military applications. Today, ideas and innovations can quickly move from experimental concepts to mainstream solutions.

To remain competitive, businesses must be prepared to adapt. By anticipating industry changes, recognizing important innovations, and preparing for major transitions, organizations can continue evolving and create successful second acts.

AmEx finds second act success

American Express is one of the world’s largest multinational financial services companies, alongside Visa, Discover, and Mastercard. A 2016 study found that the American Express network accounted for nearly 23% of all credit card transactions in the United States, with 114 million cards in active use. But do you know how the company got its name?

American Express was founded in 1850 as a freight and express mail business in Buffalo, New York. The company quickly expanded its operations across much of the United States. In 1857, it launched a money order service to compete with the U.S. Postal Service and later partnered with railroad and steamship companies to expand its presence in Europe.

In the late 1880s, company president J.C. Fargo faced a major challenge while traveling through Europe. Despite carrying letters of credit from trusted banks, Fargo struggled to exchange them for cash in smaller European towns. He realized that if a business leader faced these difficulties, everyday travelers likely faced even greater challenges.

Recognizing that traditional credit systems were no longer meeting customer needs, Fargo partnered with inventor Marcellus Berry to create the first traveler’s cheque—the American Express Travelers Cheque. This innovation became a major success. When World War I began in 1914, American Express was one of the few companies capable of extending credit to European customers. Later, when President Theodore Roosevelt took action against railroad monopolies, many freight businesses suffered major losses, but Amex’s financial services business helped the company survive.

American Express did not originally set out to become a financial services company. It started as a freight and express mail provider and succeeded in that space. However, its leaders’ ability to recognize market changes and adapt through innovation allowed the company to expand into a new direction that became essential to its long-term success.

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People, not trends, drive business

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Consumers like making the emotional choice

No brand builds consumer-focused narratives quite like Jim Beam. One of the world’s best-selling bourbon and whiskey brands, Jim Beam was established in Kentucky in 1795 under the name Old Jake Beam’s Sour Mash.

The company continued to grow over the next two centuries, surviving major historical events such as the Civil War, two world wars, the Great Depression, and Prohibition. It achieved this by maintaining a strong understanding of its brand identity and its customers.

In the words of Fred Noe, Jim Beam’s master distiller and seventh-generation descendant of founder Jacob Beam:

“There’s no reason to go into business if you don’t have consumers who will buy what you’re selling, so you’ve got to take care of them… We don’t take anyone for granted, never have. We’ve always made an effort to let them know we appreciate their loyalty. And we have loyal customers, about as loyal as you can get. People who are engaged with our brand, people who feel part of the Beam family… So, stay close to your customers, engage them in your business, and show them you understand them, that you care.”