Extinction Vortex
Common business extinction vortices: (1) Death Spiral: revenue decline → cost-cutting → service degradation → further revenue decline.
If cutting costs makes the problem worse, you're in a vortex.
Once populations decline below critical thresholds, multiple factors interact to create extinction vortices - positive feedbacks that accelerate decline, making extinction increasingly likely even if the initial threat is removed. The small-population vortex: population declines → inbreeding depression → reduced fitness → further decline → demographic stochasticity → genetic diversity loss → Allee threshold breach → extinction. Each step feeds back into faster decline. Removing the initial threat doesn't reverse the vortex once underway.
Business Application of Extinction Vortex
Common business extinction vortices: (1) Death Spiral: revenue decline → cost-cutting → service degradation → further revenue decline. (2) Debt Trap: debt accumulation → credit downgrade → higher rates → more debt → insolvency. (3) Talent Exodus: talent leaves → reduced capability → competitive losses → more talent exits. (4) Concentration Curse: customer concentration → key customer loss → revenue shock → inability to replace.