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.

---

Author(s): Michele Zanini
Original Source: The McKinsey Quarterly