The Myth of Market Share: Why Market Share Is the Fool's Gold of Business (Crown Business Briefings)

Richard Miniter skewers the sacred cow of market share and debunks the conventional wisdom that corporate profits rise as you grab more territory in the marketplace. Market share is the fools gold of modern business. In reality companies that maximize market share end up minimizing profits while their smarter rivals earn higher returns. Three times out of four on average the most profitable firm is not the one with the largest slice of the market. Yet the myth of market share continues to hobble and kill great companies while smaller competitors dig out real profits. Executives entrepreneurs investors and regulators will learn why megamergers often fail brand extensions wither and stocks tumble. The Myth of Market Share also reveals a positive and proven strategy for transforming a company into a profit leader. Richard Miniter recounts many cautionary tales of great companies that refused to changeand outlines the practical plans of those that changed and flourished. Managers and investors will profit from knowing why Dell prospers by treating market share as a benchmark not as a goal. Executives and entrepreneurs can retool their strategies by examining the case studies in this book including Ryanair an upstart Irish air carrier that transformed itself into the worlds most profitable airline; International Paper a manufacturing Goliath that tried to buy success; Boeing the plane maker that pulled out of a steep dive by jettisoning its market share strategies; and DaimlerChrysler the carmaker that stalled when it tried to be all things to all people. By providing a road map for persuading doubtful colleagues and leading a company to profit leadership The Myth of Market Share is an entertaining historical review and leadership tutorial delivering proven strategies for generating long-term profits and sustainable growth during these uncertain times. From the eBook edition.