Research: How Old Companies Can Ignite New Growth
Stagnation is not destiny for mature firms, as a minority achieve breakout growth that lifts shareholder returns without sacrificing margins.
Summary
Pidun, Szekasy and Job studied 848 companies that had five years of below-industry revenue growth and found 99 that broke out, growing at least twice as fast as peers for five years and then sustaining above-industry growth. These firms earned nearly 20% average annual shareholder returns in the breakout phase, spanned all sectors and expanded margins. The authors use this evidence to show how older companies can reignite growth.
Editor's opinion
Large-sample (848 companies) BCG Henderson research quantifying breakout growth after stagnation, with real, actionable segmentation.
Key concepts
Breakout growth · Corporate stagnation · Mature firm renewal