"The study identified 61 companies that outperformed their peers from 2019 to 2024, including the investment bank JPMorgan Chase & Co.; the insurance company Progressive; ASML, the Dutch manufacturer of machines for making chips; and Builder FirstSource, a construction products and services company. This was, of course, a tough period that included the COVID pandemic, followed by inflation and a labor shortage. Still, on average, those companies beat the revenue growth of their peers by an impressive five percentage points and beat annual profitability by seven percentage points."
"They fund business growth through good times and bad. Easy to say, hard to do when money is tight, but these companies gulp hard and do it. They build a diversified set of growth engines, not relying on just one or two. Not every venture will succeed. But these companies see opportunities to build growth engines outside their primary business, while leveraging existing assets."
"They use technology to make it all go faster. Time is money, especially when companies everywhere are using AI to gain advantage by speed. Those three traits bring us back to Walmart. Its ad business, Walmart Connect, is an internal advertising platform where sellers can promote goods that may be sold online at Walmart Marketplace or in physical stores, powered by the company's immense tr"
McKinsey research identified 61 companies that significantly outperformed peers from 2019 to 2024, beating revenue growth by five percentage points and profitability by seven percentage points despite pandemic, inflation, and labor challenges. These winners shared three common characteristics: maintaining investment in growth during both prosperous and difficult periods, developing multiple diversified growth engines rather than relying on single revenue sources, and utilizing technology to accelerate operations. Walmart exemplifies this strategy through its advertising business, Walmart Connect, which generated approximately 30% of the company's operating profit, demonstrating how established retailers can build profitable revenue streams outside traditional retail operations by leveraging existing assets and customer data.
#business-growth-strategy #diversified-revenue-streams #technology-acceleration #outperforming-companies #advertising-business-models
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