WHO PAYS FOR

CORPORATE STRATEGY?

A study of strategic costs across the 100 largest U.S. companies

THREE FINDINGS FROM THE STUDY

77%

of strategic burdens begin outside the company

Most current and emerging strategic costs identified in the study are initially carried by suppliers, partners, employees, customers, utilities, or communities rather than by the company itself.

Cost transfer does not result in cost elimination.

STRATEGY HAS TWO BALANCE SHEETS

635

Cost Candidates

70

Validated Costs

371

Emerging Costs

46%

of costs come from scale and capacity expansion

Growth increasingly depends on infrastructure companies do not control—from power grids and manufacturing capacity to suppliers and permitting systems.
The constraint on growth may exist outside the enterprise.

The value the company creates.

  • Revenue

  • Margin

  • Market share

  • Capital returns

100

Largest U.S. Companies

Control

creates value by reducing optionality for others

Platform and ecosystem strategies can increase retention, integration, and recurring revenue while reducing stakeholder choice, portability, negotiating leverage, and freedom to exit.

The same mechanism that creates value can also create resistance.

The costs required to produce value.

  • Workforce adjustment

  • Supplier investment

  • Infrastructure upgrades

  • Capital Rigidity