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Can you give me a few examples of "drivers of growth" within context?

Kay asked on Oct 10, 2018 - 2 answers

This question has come up in a few McKinsey cases, and I find myself always giving generic, non-industry specific suggestions. I think I don't fully grasp the scope of what this term entails - would anyone be able to provide a few suggestions within a particular industry?

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A updated his answer on Oct 10, 2018

Hi Kay,

I use the following framework based on stakeholders to identify and communicate drivers of growth (let's say for the pharmaceutical industry):

Demand Side

  • Increase in per capita income resulting in more spending
  • Rise in lifestyle disease
  • Move to preventive rather than curative methods
  • Affordable insurance plans

Supply Side

  • New treatment techniques
  • Major R&D breakthrough
  • Introduction of generic drugs

Regulations

  • State-sponsored Medicare plans
  • Subsidy to a certain sub-sector

You can tailor it as per the industry you're discussing. Experts can obviously add more or provide a better framework than this :)

Thanks
Anuj

(edited)

Vlad replied on Oct 10, 2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

There is a number of industry-specific ones like ARPU or Revenue per sqm. I recommend downloading the annual reports for investors of the top companies in each industry (retail, cpg, banking, etc) and check the metrics / drivers / KPIs they are using. It will answer all your questions.

Best

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