N 25 economies 6474 companies Ratio of large company revenue and value added to

N 25 economies 6474 companies ratio of large company

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N = 25 economies; 6,474 companies Ratio of large-company revenue and value added to GDP % 11 18 26 27 64 1995– 99 2000– 04 2005– 10 2011– 16 22 41 60 +42 Outperformers 6 10 13 13 1995– 99 2011– 16 2000– 04 2005– 10 13 21 28 29 +16 Non-outperformers Revenue Value added Revenue to GDP Value added to GDP
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8 McKinsey & Company Most emerging economies exhibit greater contested leadership among top firms. Percent of firms remaining in top quintile of economic profit (2001-05 and 2011-15) 20 34 36 43 50 58 60 62 63 63 68 76 South Korea India Malaysia China & Hong Kong Canada Germany Australia Japan France Switzerland USA UK 45 62 High income Outperformers
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9 McKinsey & Company Top emerging economy firms are more innovative, globally oriented, proactive and nimble than high- income peers. 56 51 48 Outperformers (China, India, Indonesia) Non-outperformers (Brazil, South Africa) High income (Germany, United States) +8pp Sales from new products % of sales 74 60 47 +27pp LESSONS FROM ASIA Comparison of self-reported performance and practices for top-performing firms across archetypes Global expansion % prioritizing expansion abroad 58 19 25 2.3x Digital disruption proactiveness Percentage points Average investment speed Number of weeks 13 11 19 -6wks
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10 McKinsey & Company Reliance Jio made rapid investment to become a market leader. SOURCE: Counterpoint Research Market Monitor Q1 2018; Photo credit: 36 0 Q1 FY17 Q1 FY18 Reliance Jio India feature phone market share , % Reliance Jio’s capital investment by quarter outpaces its next largest competitor 1 4:1 1 Based on reports of planned investment for Reliance Jio for 1 quarter in 2017 of $2.8B, compared to reports of planned investment by Bharti Airtel of $2.5B for 2017-2018
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11 McKinsey & Company Transsion disrupted the African market by creating products that best served local customer needs. SOURCE: McKinsey Global institute; Transsion Holdings; IDC; Q4 2017 CMR Report; Literature review; Photo credit: 46% 2017 market share in Africa #1 in the African handset market
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Looking ahead, emerging economies can grow trade increasingly amongst themselves.
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