Market Share is just a Headline ?



Writing after a long long time – Must say the world has changed, our prediction of ecommerce boom has just taken shape or is just taking shape , its another matter at what cost or profits currently . are operators  buying share from the market ? 


As a  marketer , the only thing  that matters most is customers and what they are experiencing  with your product/ service ,and how do we leverage this to get more new consumers  , but most of us  get carried away with the need  off share more than the experience  part , in any product category , share does matter , but how much of this comes in what cost is the issue .

Can a brand garner consumers thus share and then change the business model  when it suits them ?  or it depends on the category , for instance in ecommerce it will be difficult to change the model as stickiness to a platform /firm might not exist , plus price warrior competitors would be still around to mop up .You could still do so with a complete change in your business model catering to say a niche consumers only , say a Flipcart only sells premium stuff from the world to Indian consumer , could be a business model


Can companies do both,  ie gain share AND  profits , yes it depends on the  market environment and the category  again .


Here is our take , market share is important ,but not at the cost of profits , there is no relevance of headline making share , if there is no profits to be had from the operations , what will share alone do to your business , maybe it can give you valuations and you can be another player in the market , but for how long ? ,
like a spice jet  ex CEO , had said , “market share is just  a  Headline “, what matters is customer experience , profits and of course the right share .( lets call it quality market share )

Comments

Unknown said…
Well said it.good clarification online trade view
Praveen Ch said…
Very well said.

I believe quality market share is obtained by companies through innovation that other companies find it very hard to replicate.

But the other story of market share which is Very critical for emerging markets for example the same ecommerce industry. New customers who want to try out online shopping might approach those who have used it and adopt same portal (but establishing trust is a critical factor)

Ultimately the word "quality" market share is something companies want to look at to stand as best among others.

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