Market share, in strategic management Strategic or institutional management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, and marketing Marketing is the process associated with promotion for sale goods or services. It is considered a "social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others." It is an integrated process through which companies create value for customers is, according to Carlton O'Neal, the percentage or proportion of the total available market A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy. It is an arrangement that allows buyers and sellers to exchange things. Markets vary in size, range, geographic scale, location, types and or market segment A market segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs. A true market segment meets all of the following criteria: it is distinct from other segments , it is homogeneous within the segment (exhibits common needs); it responds similarly to a market that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing processes, (generally desk/secondary research Secondary research involves the summary, collation and/or synthesis of existing research rather than primary research, where data is collected from, for example, research subjects or experiments, although sometimes primary research Primary research involves the collection of data that does not already exist. This can be through numerous forms, including questionnaires and telephone interviews amongst others. This information may be collected in things like questionnaires, magazines, and Interviews) to estimate the total market size and a company's market share.
Increasing marketliability is one of the most important objectives used in business A business is a legally recognized organization designed to provide goods and/or services to consumers. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main. The main advantage of using market share is that it abstracts from industry-wide macroenvironmental variables Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering such as the state of the economy, or changes in tax policy Tax policy is the government's approach to taxation, both from the practical and normative side of the question. According to the national environment, the respective share of different companies changes and hence this causes change in the share market values; the reason can be political ups and downs, any disaster, any happening or mis-happening. Other objectives include return on investment In finance, rate of return , also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/ (ROI), return on assets This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. Its a useful number for comparing competing companies in the same industry. The number will vary widely across different industries. Return on assets gives an indication of the capital intensity of (ROA), and target rate of profit In neoclassical economics, economic profit, or profit, is the difference between a firm's total revenue and its opportunity costs. In classical economics profit is the return to the employer of capital stock in any productive pursuit involving labor. These two definitions are actually the same. In both instances economic profit is the return to an.
See also
- Market share analysis r Market share analysis is an important part of market analysis and indicates how well a firm is doing in the marketplace compared to its competitors
- Market power In economics, market power is the ability of a firm to alter the market price of a good or service. A firm with market power can raise prices without losing all customers to competitors
External links
- A Model of Market Shares I and A Model of Market Shares II by Fiona Maclachlan, The Wolfram Demonstrations Project The Wolfram Demonstrations Project is developed by Wolfram Research, whose stated goal is to bring computational exploration to the widest possible audience. It consists of an organized, open-source collection of small interactive programs called Demonstrations, which are meant to visually and interactively represent ideas from a range of fields.
Categories: Marketing Categories: Business | Service industries | Business economics | Strategic management | Market structure and pricing Categories: Microeconomics | Financial markets | Industrial organization | Economics of regulation
BusinessWeek
Whitacre has given Reuss the daunting task of breaking the GM cycle of buying market share with profit-killing rebates. The tough, impatient chairman has ...
Reuss and Docherty: We Will Earn, Not Buy, Our Market Share Las Vegas TSG (blog)
Key GM Exec: Blast from the Past, Nod to the Future msnbc.com
GM's Lutz Extends Stay, Enforces Whitacre's Monday-Meeting Plan Bloomberg
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