If an employee is working in a sector that is no longer valuable, a transition is inevitable. This framework can help you realize the declining value of an aspect of your business in time to ease the transition, by helping them gain new skills, relocate and/or find a new job.
If the trend is ignored, a desperate firing will happen, a desirable situation for nobody.

Employees should know ahead of time that their job isn't essential to the business anymore, but if they are hardworking, there are plenty of places to plug them in, though they may need to refresh their skills.

If you understand the forces that effect the market cap and whether your growth is rising or flattening out you can create a proper strategy with many more options because of your foresight. If a particular sector no longer has high growth potential then the best option is probably to cut costs down to the bare essentials while using the large amount of wealth already captured from that sector to place bets on new riskier sectors.
But corporations don't do move to new risky sectors well. Which is why I think once their time has passed they should focus on becoming investment vehicles for more efficient sectors like the entrepreneurial world. More on that in a post.

Great ideas, the concept of building hooks for startups to work together is the most solid.

I think the value prop to companies is addressed a little weakly. I can fire hard-working employees? I can move out of a profitable market sooner than I otherwise would? Doesn't sound like why I should buy into the system.

Instead, I'd focus on the benefits of increased speed and certainty. You can build viable businesses, that are more likely to succeed, faster.