2+
1
0
xTSR,¹ 2003–2021,
(n = 274 companies²)
Number of “right-to-win” rationales used
AI and TMT companies that pursued adjacencies where they had a strong ‘right to win’ generated the highest shareholder returns.
2.5
0.3
–3.9
15.1
10.1
4.3
Value creation logic to fuel growth into adjacencies
Others
Recent growth outperformers
Disruption and business model innovation
Build on industry know-how to introduce a new business model,
disruptive technology, or subscription/
monetization model
Value chain
Move upstream or downstream to achieve cost and revenue synergies
Capability
Leverage existing assets and people to provide new offerings
Customer
Use relationships and unique knowledge of customers’ pain points to sell a new product
McKinsey & Company
Source: McKinsey Corporate Performance Analytics™
Note: Value creation logic classifications are underpinned by expert opinions.
Median p.a. for the period from adjacency entry to 2021.
¹
Advanced Industries and telco, media, and technology companies; number of companies in each subsample are as follows: recent growth outperformers
(n = 70), others (n = 204).
²