| Insights from the 25th Annual Value Creators Rankings | | | |
| Since 1999, BCG has analyzed the long-term value creation performance of companies around the world. The goal? To give management teams clear guidance on where they should focus their efforts to drive stronger and more sustainable shareholder returns. | |
| Top Ten Large-Cap Value Creators of the Past 25 Years | | |
| RANK | COMPANY | HQ | INDUSTRY | | 1 | Monster Beverage | US | Consumer Nondurables | | 2 | Apple | US | Technology Hardware | | 3 | Amazon | US | Retail | | 4 | HDFC Bank | India | Banks | | 5 | Infosys | India | Software and IT Services | | 6 | Fast Retailing | Japan | Fashion and Luxury | | 7 | Vale | Brazil | Mining | | 8 | Shanxi Xinghuacun
Fen Wine Factory | China | Consumer Nondurables | | 9 | ICICI Bank | India | Banks | | 10 | CSL | Australia | Large-Cap Pharma | | |
| Right Market, Right Strategy | | |
| Global capital markets have been on a remarkable journey over the past 25 years. Despite four major crises—the dot-com bubble, the global financial crisis, the COVID-19 dip, and the 2022 bear market—global capital markets posted an average annual return of roughly 9%. Delivering value creation over a long period of time does not happen by accident, though. These top performers share two main characteristics: | |
| | Play in attractive markets.
Top performers benefit from market tailwinds and the growth opportunities they present. Some companies were fortunate to start out in the right markets, but many others expanded into promising new market segments over time. | | | | |
| | Compete through differentiation and innovation.
Secular tailwinds alone aren’t enough. Successful companies build and protect strong market positions through innovation and differentiation. They’re even willing to disrupt their own near-term success to stay ahead of competitors over the long run. | | | | |
| In an uncertain market, companies that apply effective strategies to identify promising markets and outpace competitors will create value in a sustainable way, regardless of what the future brings. | |
| Investing in Innovation: A Time-Based Competition | | |
| Innovation is a key opportunity for financial institutions, particularly regarding digital ecosystems. Non-traditional competitors, especially tech players like Apple and Amazon, are extremely good at building ecosystems that bundle payments and other banking services into broader offerings, and they’re taking market share from incumbents as a result. Financial institutions can leverage these four strategies to build an innovative ecosystem offering: | - Create an ecosystem around the core business and play as an orchestrator.
- Go deep into specific verticals and markets.
- Use ecosystems to learn and experiment.
- Play as a dedicated contributor.
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| The Experience Curve: CEO Outlook 2023 | | |
| One way to boost shareholder returns is to make companies more resilient. In a recent BCG survey, 73% of C-suite executives point to inflation, rising interest rates, and a potential recession as key challenges in 2023. Yet even more, nearly 80%, are optimistic about their companies’ performance this year. | |
| Cost-cutting is a clear priority, but companies are reinvesting those savings to reposition their organizations for growth and resilience. There’s a clear logic to that approach: we found that, over the past 12 months, resilient companies outperformed their industry peers in shareholder returns by as much as 15 percentage points. | |
| | | of C-suite executives are optimistic about their companies’ performance this year. | | | | |
