One of the time honored market planning activities is to understand the density or concentration of target markets. The idea is that each market needs different resources and tactics to cover the major players and then attack the rest of the market.
To look at the market overall, we took the companies in the Global 5000 and examined the revenue for the top 10 in each vertical compared to the industry total for all Global 5000 companies – the picture is below.
- At the top of the list are top heavy industries like Telecom, Autos and Oil where revenues of the top 10 are 40% or more of all Global 5000 firms. The company that penetrates some of these will have an immediate impact and strong position in that industry.
- On the other end of the spectrum are Financials and the Basic Materials (commodities) where the top 10 is quite a small footprint. The implication here is that it would take many more resources to capture enough market to make a significant market impact.
