Market share—Key to higher profitability?

Abstract

Strategic decisions on market share policy have traditionally been made on a qualitative and subjective basis. In an effort to put strategic decision making on a more quantitative and objective level, studies have been made to identify a statistical relationship between market share and profitability. This paper discusses these modelling attempts and through specific market examples examines their validity. The author also suggests a more complex modelling approach to the issue that reflects the reality of the situation.