Looking For Growth In All The Right Places

What are the sources of corporate growth? If you take a middle-of-the- road view of markets, as many executives do, the answers may surprise you: averaging out the different growth rates in an industry’s segments and sub-segments can produce a misleading view of its growth prospects.

Most so-called growth industries include sub-industries or segments that are not growing at all, while relatively mature industries often have segments that are growing rapidly. Broad terms such as “growth industry” and “mature industry,” while time-honored and convenient, can prove imprecise or even downright wrong upon closer analysis.

Our research on the revenue growth of large companies suggests that executives should “de-average” their view of markets and develop a granular perspective on trends, future growth rates and market structures. Insights into sub-industries, segments, categories and micro-markets are the building blocks of portfolio choice.

Like this content? Why not share it?
Share on FacebookTweet about this on TwitterShare on LinkedInBuffer this pagePin on PinterestShare on Redditshare on TumblrShare on StumbleUpon
There Are No Comments
Click to Add the First »