Industry ‘power curves’ for real competitive strategy

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Now here’s a really useful tool from McKinsey. Using ‘power curves’ to assess industry dynamics shows the value of seeing the size-distribution of competitors in an industry. It shows the tool for banking, chemicals, software and biotech. You can do much, much more with this though.

Merely seeing the pattern is interesting but so what? This is a fundamental tool for something virtually no companies do well – truly competitive strategy.

The basic principles are simple:

  • Trying to do a ...
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