The 80-20 theory is based on 20% of markets generating 80% of the Earnings Before Tax, Interest, Depreciation, and Amortization (EBITDA). The main objective of applying the 80-20 rule is to identify the most productive or profitable segments, and prioritize them. By extending the 80-20 rule to the valve market, companies can use niche analysis to expand on which markets are generating the most EBITDA.
Have you read this article yet? Check it out here!