Richard Koch’s “Star Businesses” concept isn’t about Hollywood glamour. It’s about explosive growth and market dominance.
According to Koch, a star business combines high growth with high market share. These are the unicorns of the business world, the ones that make investors salivate and competitors quake.
But how rare are these stellar performers? A study by the Boston Consulting Group found that only 1% of companies create 80% of all economic profit.
Think Amazon in e-commerce, Google in search, or Uber in ride-sharing. They didn’t just enter markets; they defined them.
As Jeff Bezos once said, “Your margin is my opportunity.” Star Businesses don’t just compete; they revolutionize.
These companies share common traits:
- They focus on fast-growing markets
- They innovate relentlessly
- They scale rapidly
- They dominate their niche
But becoming a Star isn’t a one-time achievement. Innovating, growing, and maintaining market leadership is a constant struggle.
So, ask yourself: Is your business reaching for the stars? Are you in a high-growth market? Are you innovating faster than your competitors? Are you scaling at breakneck speed?
In business, as in the cosmos, stars that burn the brightest often shine the longest.
