Gates argues that companies cannot rely indefinitely on the products, methods or assumptions that made them successful. In the fuller passage, he says Microsoft had to redefine what it did every few years, reflecting the rapid pace of change in the technology industry. A company that remains unchanged while competitors, technologies and customer expectations develop around it risks losing its position.

The quote is therefore about adaptation as a central part of business strategy. Gates does not suggest that change should be pursued for its own sake; rather, he presents periodic reassessment as necessary in a competitive environment. The idea applies particularly strongly to technology companies, where new platforms and products can alter markets quickly, but it can also be used more broadly. Organisations may need to reconsider their priorities, capabilities and business models when external conditions change if they are to remain relevant and competitive.

Full quotation

“Every three years are important in terms of redefining what we do. Any company that stays the same will be passed by very quickly and there are lots of fine examples of that.”