Strategy

Where, Not How

New research reveals the importance of market segment over market share when it comes to growth.
Janet KersnarJuly 7, 2008

Research by McKinsey has found that where a company competes is more important than how it competes. In analysing revenue between 1996 and 2006 of 400 large-cap companies, it emerged that more than half of all of the growth of the average company was due to underlying growth in market segments, and to a lesser degree in M&A. Relatively little growth was achieved through organic gains in market share.

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