Some companies are disproportionately bigger than the industry average. This is true across industries, and geographical locations. About four- fifths of the global positive economic profit can be traced down to a mere tenth of the world’s largest companies. Business intelligence provided by McKinsey further confirms that a mere one percent of companies accounts for thirty- six percent of the said profits. While economic profits soar for some, the losses likewise too proportionately go up. Several firms are now turning in to what may be described as ‘zombie companies’. Size and productivity do matter, but capital investment often has a more direct influence. Superstar companies on average spend about two to three times more on business research and development than do the others. Intangible investments are now of top importance due to the ongoing digital disruption.

Source:https://www.mckinsey.com/featured-insights/innovation-and-growth/what-every-ceo-needs-to-know-about-superstar-companies

Uploaded Date:20 May 2019