What’s Driving Superstar Companies, Industries, and Cities

The debate about superstar firms and superstar effects has been intensifying, partly in response to the rapid growth of global US tech companies. However, scratch the surface and the superstar phenomenon may not be quite what it seems. Wider dynamics may be at play. In our recent research at the McKinsey Global Institute, we examined the superstar phenomenon across firms, as well as sectors and cities. We define superstar to mean a firm, sector, or city that has a substantially greater share of income than peers and is pulling away from those peers over time. Yes, we found that a superstar dynamic is occurring for firms, cities and, to a lesser extent, sectors. In this article, we will focus mostly on firms, but with some brief commentary on sectors and cities at the end. https://hbr.org/2018/10/whats-driving-superstar-companies-industries-and-cities