Determining Industry Category Leader
Tuesday, December 9, 2008 at 10:25PM A great input to determining the category industry leader – McKinsey explains “Power Curves” to assess industry dynamics (requires registration).
Plotting the structure of industries across markets and geographies reveals a startling and increasing inequality in size and performance among even the largest companies.
What emerges is a “power curve” pattern characterized by a short “head,” comprising a few companies with extremely large incomes, and quickly dropping off to a long “tail” of significantly smaller competitors.
These power curves can be a useful diagnostic tool for understanding the structural dynamics of an industry and a company’s role and options in its evolution.
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10 of the Most Efficient Companies on the Planet. To measure a company's efficiency, you can examine its return on equity (ROE). This ratio is composed of a company's profit margin multiplied by its asset turnover, multiplied by its financial leverage. It measures how efficiently the company employs its owners' capital.* * *
Great resource for creating a catalog for indirect materials. http://www.eva.virginia.gov/vendors/pages/catalogcreation.htm
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