The granularity of growth

A fine-grained approach to growth is essential for making the right choices about where to compete.

What are the sources of corporate growth? If, like many executives, you take an average view of markets, the answers may surprise you: averaging out the different growth rates in an industrys segments and sub-segments can produce a misleading view of its growth prospects. Most so-called growth industries, such as high tech, include sub-industries or segments that are not growing at all, while relatively mature industries, such as European telecommunications, often have segments that are growing rapidly. Broad terms such as growth industry and mature industry, while time honoured and convenient, can prove imprecise or even downright wrong upon closer analysis ... READ MORE

Released by McKinsey & Company - May 2007