Asked by Radhika Singh on May 16, 2024

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What are the positive and negative effects of a strategy based on gaining market share?

Market Share

The percentage of an industry's sales that a particular company controls.

  • Analyze the multifaceted effects of strategies aimed at gaining market share.
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CS
Cierra SampsonMay 21, 2024
Final Answer :
Market share certainly provides some specific benefits,including economies of scale,experience curve effects,and leverage to influence market wide norms (such as price points and discounting patterns).These benefits may lead to marketplace and financial success.However,there is also evidence that share is not the only route to profitability and that the very act of defining strategy and objectives by market share metrics may hurt performance.Research indicates that internally focused objectives are far more effective than competitor-oriented objectives.