Presentation
For many, the answer to our question might seem obvious. Just as you can never be too rich or too thin, they might say, you can never pursue too much market share. The experience of many companies in many markets, however, has shown that such an orientation can get a business into a lot of trouble. Where profits are concerned, almost every product has a natural limit to its market share, beyond which the pursuit of further share is more likely to reduce profits than increase them.
So the big question, of course, is "What is the magic number?" If a product has a share that's "just right" for it, what is that number? To perhaps no one's surprise, the magic number differs from one product to another. it can be estimated, however, based on an understanding of a product's relative value position in its market.
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