In this article Pankaj Ghemawat talks about using rooted maps in order to better understand the global market. A rooted map is a tool that gives business the ability to look at the global markets though different perspectives. Through the use of a rooted map businesses can reduce the “distance” between them and their markets, gain insight into the preferences of that market, detect looming threats such as competition and broader external risks, etc.
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by in The McKinsey Quarterly on November 02, 2000
Philipp M. Nattermann explains why strategic herding, meaning adopting a competitors successful business plan, may be a good operational tool, but a bad benchmark. When two companies are competing in the same market both of the companies margins decline in the long run. This happens because when more and more companies enter into the same market the amount of profit is split between all of the competing businesses eventually making the market unprofitable. Philipp M. Natermann discusses other possible business plans that may be a better option.
