Left unchecked, market forces continually conspire to deplete profits. Powerful business strategies can counteract those tendencies, but good strategy is difficult to formulate.1 Indeed, the latest McKinsey research (see “The strategic yardstick you can’t afford to ignore.”) finds that a very small number of companies create most economic profit.2 The research also shows that a significant number of good companies outperform even in so-called bad industries, where the average economic profit is less than the market average.
via Mastering the building blocks of strategy | McKinsey & Company.