This just came in via my inbox from The McKinsey Quarterly:
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.
Now, I am the first to admit that I am not McKinsey calibre but I am way ahead of this one as I have been analysing and presenting such curves for years.
DW
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